What is the ruling on a person agreeing with a lender to purchase an apartment in the borrower's name, whereby the borrower pays an annual rent to the lender commensurate with his share in the value of the apartment, in addition to repaying the principal loan in installments?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
This is blatant usury (riba) because the lender did not obtain the annual rent except in exchange for the loan. A benevolent loan () makes the apartment the property of the borrower, and the lender has no right in it for which he would deserve rent. Every loan that draws a benefit for the lender is usury.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
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- Ftawy
- Original fatwa ID
- 183653
- Added here
- . This is when the answer was added to El Fatwa, not the fatwa's date.
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- Summary from Ftawy's records, reviewed by El Fatwa's sharia committee.
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