Is it permissible to engage in usurious loans to purchase cooperative apartments for youth out of necessity for one who cannot obtain other housing for marriage, and is marriage considered one of the Shar’i necessities? And what should one do who purchased an apartment with a usurious loan, being ignorant of its prohibition? Should he sell it, thereby ensnaring others in usury, or should he hasten to pay the installments while also paying the same amount as the interest? And does the condition of a late payment penalty in installments invalidate the entire contract?

A usurious loan is forbidden, except in cases of recognized legal necessity, such as someone who cannot find housing except through a usurious loan, and is unable to rent. Mere desire for marriage or preservation of wealth does not permit engaging in usury. One who has purchased an apartment through usurious means is not permitted to sell it to others, in order to prevent others from falling into usury. Rather, he must request the annulment of the contract and the refund of what he paid. If he is unable to do so, then he should keep the apartment and pay its installments, along with repentance and seeking forgiveness. He is not obligated to expedite the installments if he will pay the same amount of usurious interest. A sales contract that stipulates a penalty for late payment is invalid. The alternative to this are Sharia-compliant guarantees such as a guarantor and a mortgage.