Is it permissible to purchase a home or finance a project through a bank that buys the commodity (a home or machinery for the project) and the customer repays the bank in installments with a specified interest?
It is forbidden for the bank to lend the price of a house or equipment, whether it pays it to the customer or to the seller. It is not permissible for the customer to enter into an interest-based loan contract except in cases of urgent necessity. There is an alternative to interest-bearing borrowing, which is Murabaha sale for the one who commands the purchase.
Summarized from the full answer at Ftawy · reviewed Sep 2, 2026
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