Is it permissible to take a loan from the bank to buy a house and pay it off before interest becomes due?
It is not permissible to take out an interest-bearing loan to buy a house or anything else, even if the amount can be repaid before interest accrues, because the bank will take interest. Even if we assume that the bank does not take interest upon accelerated repayment, this does not permit initiating the transaction in the first place, because it is an affirmation of usury, and because it is the very origin of usury that the people of Jahiliyyah (pre-Islamic ignorance) practiced. The Prophet, peace and blessings be upon him, cursed the one who consumes usury, the one who feeds it, its scribe, and its witnesses, and he said: "They are all equal [in sin]."
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- Ftawy
- Original fatwa ID
- 47730
- Imported
- Translation status
- Source text, unreviewed
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