Is purchasing a home through the "rent-to-own" formula—organized by the state with financing from a bank, involving an interest rate between the state and the bank, but where the citizen pays the amount in installments without interest—permissible (halal)?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
The agreement made by the state with the bank is an usurious, forbidden loan (riba), and it is impermissible for a citizen to take it, as it involves assisting in usury. Whoever is pleased with usury or assists in it is included in the Prophet's (peace be upon him) curse: "Allah has cursed the one who consumes riba, the one who pays it, its two witnesses, and its scribe. They are all equal in sin." As for rent-to-own or lease-to-own, it is a corrupt contract that should not be entered into except under conditions that are often not met.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/43018
Where this answer came from
- Source platform
- Ftawy
- Original fatwa ID
- 43018
- 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