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Is it permissible for the bank to grant a client a benevolent loan in dollars to repay their remaining Murabaha debt in euros, with the benevolent loan remaining due from the client in dollar installments, in order to avoid exchange rate fluctuations?

1 min readAlso available in العربية

It is clear that the loan involves a benefit for the lender, which is unanimously forbidden. The transaction also involves deferring a debt for a debt, which is legally prohibited in all cases where it leads to an increase in the debt upon the debtor in exchange for an extension of the term. Therefore, this transaction is not permissible.

Summarized from the full answer at Ftawy · reviewed Sep 2, 2026

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