What is the ruling on borrowing from private institutions that deal with usurious banks for a micro-project, knowing that the contract stipulates that the state will pay the usurious interest?
Source: FtawySummarized from the full answer at Ftawy · imported Sep 2, 2026
As long as the loan is usurious and entails an interest, it is not permissible to undertake it for the purpose of establishing investment projects. The fact that the state pays the usurious interests on behalf of the borrower does not make it permissible to undertake such a loan.
Summarized from the full answer at Ftawy · imported
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- Ftawy
- Original fatwa ID
- 134132
- Imported
- Translation status
- Source text, unreviewed
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