Is buying an apartment from a bank that owns it, paying a down payment and the remainder over ten years with 10% interest, considered usury (riba)?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
If the bank owns the apartment and sells it at an installment price without stipulating an increase in case of late payment, then there is no objection to that. However, if it stipulates an increase in the price for late payment, then the purchase is not permissible. If the bank does not own the apartment and pays its price to its owner on behalf of the buyer, so that the buyer pays back more than what was paid, then this is a prohibited usurious loan.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/70429
Where this answer came from
- Source platform
- Ftawy
- Original fatwa ID
- 70429
- 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