Is purchasing an apartment for someone residing in Italy for 50,0 dirhams to avoid an interest-based loan, in exchange for renting it for 450 dirhams while the normal rental price is 1200 dirhams, considered a legitimate transaction in Islamic law?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
Every loan that draws a benefit is usury (riba), such as the borrower allowing the lender to live in his house, or renting it to him for less than the market rent. This is forbidden in Islamic law. The questioner must repent, annul the forbidden contract, calculate the market rent for the past period, and pay the difference to the lender because it is in exchange for the loan.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/85282
Where this answer came from
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- Ftawy
- Original fatwa ID
- 85282
- 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