Is it permissible to take a loan from an institution that supports housing loans at 0% for employees, whereby the employee pays the original amount without any increase, knowing that the institution is the one that bears the interest accrued on the loan?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
If the employer gives the employee a loan and reclaims it without any increase, then there is no harm in that. However, if the employee takes out an interest-bearing usurious loan from a bank and the employer bears the payment of all interest, such that the employee only pays the principal amount of the loan, this does not make the loan permissible. Rather, it is a usurious loan that is not permissible to enter into initially, nor is it permissible to assist in it.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/176116
Where this answer came from
- Source platform
- Ftawy
- Original fatwa ID
- 176116
- 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