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The question

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?

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Source: FtawySummarized from the full answer at Ftawy · imported Sep 2, 20261 min readAlso available in العربية
The answer

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

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Source platform
Ftawy
Original fatwa ID
111894
Imported
Translation status
Source text, unreviewed
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