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The question

Is it permissible to obtain a loan from the Central Bank of Egypt to establish a small project, where the bank pays the price of the goods to the company and collects monthly installments from the borrower with a declining interest rate of 5% (with a fixed rate of 3%)?

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Source: FtawySummary from Ftawy's records · added here Sep 2, 20261 min readAlso available in العربية
The answer

The correct form of Murabaha is for the bank to purchase the goods for itself, so they enter into its ownership, responsibility, and possession, and then sell them to the requesting party at an increased price, because time has a share in the price. However, if the bank pays the price of the goods on behalf of the young man without purchasing them for itself, then this is a forbidden usurious loan, due to the Almighty’s saying: "O you who have believed, fear Allah and give up what remains [due to you] of usury, if you should be believers. And if you do not, then be informed of a war [against you] from Allah and His Messenger. But if you repent, you may have your principal - [thus] you do no wrong, nor are you wronged." It is obligatory for a Muslim to verify and ascertain the true nature of a transaction and avoid what is forbidden.

Summary from Ftawy's records · added here

Reviewed by El Fatwa's sharia committee.

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Where this answer came from
Source platform
Ftawy
Original fatwa ID
169990
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.
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Read the full answer on Ftawy