Is it permissible to take out a loan from a bank with fixed interest (10%) to pay the down payment for a social housing apartment and to start a project?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
Borrowing with interest is usury, which is forbidden by Islamic law, whether it is for owning a home or financing a project. It is one of the gravest sins. Usurious borrowing for home ownership is not permissible as long as it is possible to rent another dwelling, unless renting becomes impossible and great hardship occurs that cannot be averted except by the usurious loan; in which case, it becomes permissible under the principle of necessities that permit the forbidden.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/188742
Where this answer came from
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- Ftawy
- Original fatwa ID
- 188742
- 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