Is it permissible to take out a loan from an interest-based bank to buy land for the purpose of building a family home, if no other alternatives are available due to high rents?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
It is not permissible to borrow with usury except in cases of dire necessity, which is when a person reaches a point where they fear perishing or are close to perishing if they do not resort to what is unlawful. One who finds rented accommodation is not compelled to use usury to own a home or land. Necessity is a state of severe danger or hardship where one fears harm to life, limb, honor, intellect, or property. There are many legitimate alternatives to usury, such as Tawarruq (monetization), Istisna' (manufacturing contract), and Murabaha (cost-plus financing).
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/111095
Where this answer came from
- Source platform
- Ftawy
- Original fatwa ID
- 111095
- 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