Is a "Takaful" document, which involves paying a monthly sum for 15 years, with a variable interest rate ranging from 7% to 12% calculated upon receipt of the amount after the term ends, and the deceased's family receiving a sum of money in the event of death before the term ends, permissible or forbidden?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
The transaction mentioned is a forbidden usurious loan, because the bank is obligated to return the amount with interest. Additionally, it contains commercial insurance based on (excessive uncertainty/risk). The legitimate formula for investment is for both the capital owner and the bank to have a common and specified share of the profit, without the bank guaranteeing the principal capital, because the losses are borne by the capital owners according to their shares.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/129628
Where this answer came from
- Source platform
- Ftawy
- Original fatwa ID
- 129628
- 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