Is it permissible to take a loan from a non-Islamic bank at an 8% interest rate and deposit it in an Islamic bank at a similar interest rate, with the aim of paying off the interest of the first loan and preserving my entitlements upon the bank's privatization?
Source: FtawySummarized from the full answer at Ftawy · imported Sep 2, 2026
It is forbidden to work in an usurious bank, and participation in commercial insurance funds is not permissible. A bank that accepts deposits with proportional interest on capital is not an Islamic bank, because this is forbidden usury (riba). Therefore, it is not permissible to take out this loan or deposit it in this bank, and one must repent from that.
Summarized from the full answer at Ftawy · imported
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Where this answer came from
- Source platform
- Ftawy
- Original fatwa ID
- 74069
- Imported
- Translation status
- Source text, unreviewed
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