What is the ruling on benefiting from a loan from a public institution designated for purchasing a car or a building, to be repaid through monthly installments without interest, with a clause in the contract regarding "life insurance" that is not applied?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
It is permissible to take a loan to purchase a car or a house with a good loan free from usury. It is not permissible to stipulate life insurance because it is forbidden by . However, if this condition is not actually applied, meaning the borrower obtains the loan without being obligated to life insurance, then there is no harm in that. The existence of the condition is like its non-existence, based on the of Barirah.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/18513
Where this answer came from
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- Ftawy
- Original fatwa ID
- 18513
- 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