What is the ruling on borrowing from an institution that stipulates life insurance in exchange for loans?
Source: FtawySummary from Ftawy's records · added here 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.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/33501
Where this answer came from
- Source platform
- Ftawy
- Original fatwa ID
- 33501
- 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