Is it considered usury for the bank to purchase the necessary equipment for my project, and then I repay the amount to them with a small interest, instead of them giving me money?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
If the transaction with the bank is conducted according to the Shariah-compliant regulations of Murabaha, with the bank owning the goods and equipment before selling them, and without stipulating a penalty for late payment, then there is no objection. However, if the bank does not own the equipment and merely pays its price, then recovers it with interest, this is a forbidden 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/111894
Where this answer came from
- Source platform
- Ftawy
- Original fatwa ID
- 111894
- 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