Is a loan of $33,0 provided by the state for the purchase of machinery, to be repaid in installments totaling more than 23,0 Libyan Dinars (the original amount in local currency), considered an interest-based (riba) loan, especially given the instability of the dollar exchange rate in Libya and the fact that the contract cannot be canceled?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
It is permissible to purchase machinery in installments from a bank if the bank first acquires ownership of it and then sells it to you at a profit, provided that the price is not increased after the agreement due to a delayed installment. It is also permissible for the bank to pay the price of the machinery on your behalf, for you to repay it in installments without any increase over the original price; otherwise, it would be usury (riba). If the transaction was prohibited and you were forced into it, then the sin is upon the one who coerced you.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/50112
Where this answer came from
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- Ftawy
- Original fatwa ID
- 50112
- 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