What is the ruling of Islamic law on employees borrowing a sum of money from the company, to be repaid over seven years, with a clause in the contract regarding life insurance, which the financial officer affirms is not currently implemented but may be applied in the future?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
It is permissible to take the loan and benefit from it as long as the condition is not actually activated. However, if the condition is activated and the required insurance is a permissible cooperative-takaful insurance, then there is no objection to it, because it is among the lawful guarantees. It is prohibited if it is a forbidden commercial insurance.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/173766
Where this answer came from
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- Ftawy
- Original fatwa ID
- 173766
- Added here
- . This is when the answer was added to El Fatwa, not the fatwa's date.
- Text
- Summary from Ftawy's records, reviewed by El Fatwa's sharia committee.
- Read the full ruling
- Read the full answer on Ftawy