Is it considered usury if the bank takes 2,000 Saudi Riyals in exchange for disbursing the housing allowance, estimated at 18,000 Saudi Riyals annually, before its scheduled date, with the bank taking the full housing allowance check in its favor at the time of its natural disbursement?
This act is clear usury (riba) because the bank lends the employee an amount and takes it back with an increase. It is akin to selling post-dated checks for less than their value.
Summarized from the full answer at Ftawy · reviewed Sep 2, 2026
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