Is it permissible to take out an interest-bearing loan from American banks to finance a project for producing halal food products for Muslims?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
Interest-bearing loans are forbidden, and usury is one of the grave, destructive sins that warrant war from Allah. Those who engage in usury are cursed by the tongue of the Messenger of Allah, peace and blessings be upon him. Starting a project is not a necessity that permits taking interest-bearing loans. Necessity is a state of danger or severe hardship where harm to life, limb, honor, mind, or wealth is feared, thus making it permissible to commit what is forbidden to avert harm. Therefore, it is not permissible to take interest-bearing loans for such a project.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/143424
Where this answer came from
- Source platform
- Ftawy
- Original fatwa ID
- 143424
- Added here
- . This is when the answer was added to El Fatwa, not the fatwa's date.
- Text
- Summary from Ftawy's records, reviewed by El Fatwa's sharia committee.
- Read the full ruling
- Read the full answer on Ftawy