Is it considered usury for the bank to purchase the necessary equipment for my project, and then I repay the amount to them with a small interest, instead of them giving me money?
Source: FtawySummarized from the full answer at Ftawy · imported Sep 2, 2026
If the transaction with the bank is conducted according to the Shariah-compliant regulations of Murabaha, with the bank owning the goods and equipment before selling them, and without stipulating a penalty for late payment, then there is no objection. However, if the bank does not own the equipment and merely pays its price, then recovers it with interest, this is a forbidden usurious loan.
Summarized from the full answer at Ftawy · imported
Read the full answer on Ftawyhttps://ftawy.com/en/questions/111894
- Source platform
- Ftawy
- Original fatwa ID
- 111894
- Imported
- Translation status
- Source text, unreviewed
- Read the full ruling
- Read the full answer on Ftawy