Is it permissible to take a loan from an interest-based bank with a contract that reduces the interest rate if the interest rate is the same as that in an Islamic bank that operates on a Murabaha system?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
The fact that the interest sought by a usurious bank from a borrower is the same as the profit (gain) set by an Islamic bank in a murabaha operation does not mean they are equal in ruling. The first is a forbidden usurious loan, while the second is a permissible murabaha sale, because Allah has permitted trade and forbidden usury. Allah, the Almighty, says: "And Allah has permitted trade and forbidden usury." Usury is not permissible except in cases of dire necessity, and owning a home is not a necessity if it is possible to rent a house for a non-onerous rent.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/113166
Where this answer came from
- Source platform
- Ftawy
- Original fatwa ID
- 113166
- 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