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The question

What is the ruling on a bank loan if another institution undertakes to pay its interest?

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

Borrowing with interest (riba) is one of the major sins, and it is not permissible except in cases of dire necessity, such as fearing perishment. The fact that another party pays the usurious excess does not make it permissible to enter into an interest-based contract.

Summary from Ftawy's records · added here

Reviewed by El Fatwa's sharia committee.

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Ftawy
Original fatwa ID
180092
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