Is it permissible for an employee to take a personal loan with interest paid by the employer?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
The contract that the company made with the bank is an usurious loan, which is forbidden and impermissible. It is not permissible for the employees to take it, as it involves aiding usury and consenting to it. This is based on the saying of the Messenger of Allah, peace and blessings be upon him: "Allah has cursed the one who consumes interest, the one who pays it, its two witnesses, and its scribe. They are all equal in sin."
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/36882
Where this answer came from
- Source platform
- Ftawy
- Original fatwa ID
- 36882
- 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