What is the ruling on taking an interest-based loan from a bank to build a house, and does the saying of Allah Almighty apply to it: "Allah destroys interest and gives increase for charities"?
If taking a loan from a bank through interest-based borrowing (riba) is involved, then it is forbidden and considered one of the gravest major sins. There is no difference between borrowing with interest for building a house or for anything else, unless a person reaches a state of necessity (ḍarūrah) that permits what is forbidden, according to the Almighty's saying: "And He has already explained to you what He has forbidden to you, except for that to which you are compelled" and "But whoever is compelled, neither desiring [it] nor transgressing, there is no sin upon him. Indeed, Allah is Forgiving and Merciful." However, if a person finds an Islamic bank and can enter into a permissible financing transaction with it for building a dwelling, then there is no sin upon him.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/178259
Where this answer came from
- Source platform
- Ftawy
- Original fatwa ID
- 178259
- 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