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The question

Is the government bank loan, which purchases an academic certificate for the borrower so that he can acquire the necessary equipment for a project, and then recovers the amount in installments with a 5% surplus after one year, considered usury, given that the bank is operating at a loss and is supported by the state?

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Source: FtawySummary from Ftawy's records · added here Sep 2, 20261 min readAlso available in العربية
The answer

If the bank buys and owns the equipment, then sells it to young people, there is no harm in that, even if it is for more than its price; because it is a permissible murabaha (cost-plus financing). However, if the bank pays the price to the owner and adds interest, this is forbidden riba (usury) and is not permissible except in cases of dire necessity.

Summary from Ftawy's records · added here

Reviewed by El Fatwa's sharia committee.

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Where this answer came from
Source platform
Ftawy
Original fatwa ID
112650
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.
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Read the full answer on Ftawy