Is taking a loan from a bank to establish a company permissible or forbidden?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
If the loan involves interest, it is forbidden to take it for the aforementioned purpose, because dealing with usury is one of the major sins, and it is not permissible except in cases of dire necessity. The Prophet, peace and blessings be upon him, said: "Usury, even if it is much, its outcome is to कमी (decrease)," and "No one increases in usury except that the outcome of his affair is to कमी (decrease)." And whoever gives up something for the sake of Allah, Allah will compensate him with something better.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/151011
Where this answer came from
- Source platform
- Ftawy
- Original fatwa ID
- 151011
- 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