What is the ruling on a merchant and a buyer dealing with a usurious bank in Palestine, knowing that the bank takes a 7% commission from the merchant when selling to a customer in installments, and no Islamic bank is available?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
This transaction is impermissible because the bank lends the price of the goods and recovers the loan amount with an increase (the commission) on it, and any increase on a loan amount is forbidden interest (riba). The -compliant alternative is Murabaha for the one who commands the purchase.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/56402
Where this answer came from
- Source platform
- Ftawy
- Original fatwa ID
- 56402
- 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