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The question

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"?

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Source: FtawySummary from Ftawy's records · added here Sep 2, 20261 min readAlso available in العربية
The answer

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.

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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.
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