What is the ruling on taking out a loan from a conventional housing bank to build a house, given the high interest rates and the unavailability of Islamic banks?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
An interest-based loan (riba) is forbidden except in cases of recognized necessity, such as having no means to secure housing other than through it. If it is possible to rent without excessive hardship, then it is not permissible to take out a usurious loan. However, if the rent consumes an individual's income to the extent that nothing is left for their own sufficiency and that of their dependents, then this constitutes a necessity that permits the forbidden.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/54486
Where this answer came from
- Source platform
- Ftawy
- Original fatwa ID
- 54486
- 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