What is the ruling on employees taking housing loans from their institution through a usurious bank, with the institution bearing the interest?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
Borrowing with interest is impermissible because it is usury (riba), as it involves a loan that brings benefit to the lender, which is forbidden by scholarly consensus. It is also impermissible to take such a loan from an interest-based bank, even if the company undertakes to pay the interest, due to the involvement in usurious transactions, aiding them, and approving of them. This is exempted for those in dire necessity.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/95700
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- Ftawy
- Original fatwa ID
- 95700
- 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