Is it permissible or impermissible to take a loan from a bank, and what is the ruling if the excess profits are expenses for the bank employees?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
All praise is due to Allah, and may peace and blessings be upon the Messenger of Allah, his family, and his companions. To proceed:
Taking a loan from a bank with interest is forbidden usury (riba), even if the interest is given other names, such as administrative fees or employee wages; this is merely beautifying the forbidden. If the bank were truthful, it would specify a fixed amount as an administrative fee, not a percentage of the principal. Allah knows best.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/90480
Where this answer came from
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- Ftawy
- Original fatwa ID
- 90480
- 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