What is the ruling on borrowing from an institution that stipulates life insurance in exchange for loans?
Source: FtawySummarized from the full answer at Ftawy · imported Sep 2, 2026
It is impermissible to enter into a life insurance contract because it is a corrupt and void contract. Therefore, it is not permissible to obey the institution by entering into this forbidden contract in exchange for a loan. However, if the loan is interest-free and they request legitimate guarantees or sureties, then there is no harm in taking the loan.
Summarized from the full answer at Ftawy · imported
Read the full answer on Ftawyhttps://ftawy.com/en/questions/33501
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- Ftawy
- Original fatwa ID
- 33501
- Imported
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- Source text, unreviewed
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