Is the loan considered usurious if the fund's source of financing is from loan repayments and their interests, along with a portion of the institution's profits, and it is granted only to employees without the institution benefiting from it?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
Loans with conditional interest are unlawful usury (riba), regardless of their purpose (such as housing) or the beneficiary group (such as the general public or a specific segment). It is not permissible to engage in such a transaction except in cases of compelling necessity or duress.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/172237
Where this answer came from
- Source platform
- Ftawy
- Original fatwa ID
- 172237
- 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