Is it permissible to hand over a plot of land to a bank for construction and to pay the amount in installments with interest?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
If the bank undertakes the construction of the land through an istisna' (manufacturing) contract for a known price to be paid to it in specified installments, then there is no objection to this, even if the total value of the installments is higher than the cost of construction. However, if the bank is to lend you the cost of construction with interest, then this is usury (riba) and is not permissible. The istisna' transaction itself is permissible.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/122843
Where this answer came from
- Source platform
- Ftawy
- Original fatwa ID
- 122843
- 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