Is it permissible to purchase a property from Al Baraka Bank by paying a percentage of the price to the bank, after which the bank pays the full price to the seller, and then the bank adds a percentage to the property's price and sells it to the buyer in installments, knowing that some have issued a fatwa (religious edict) that this transaction is usury because the bank is an intermediary that takes a percentage and does not actually own the property?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
The transaction mentioned is Islamically forbidden if the bank does not purchase the property and it does not enter into its ownership, because it is an interest-based loan (riba). The inclusion of the property in it is a stratagem to facilitate usury. The bank is not an intermediary but rather a lender with interest. Therefore, it is not permissible to purchase the property in this forbidden manner.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/86191
Where this answer came from
- Source platform
- Ftawy
- Original fatwa ID
- 86191
- 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