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The question

Is it permissible to convert an interest-bearing loan for purchasing a house into Islamic financing through partnership with a financing company that claims adherence to Sharia principles, knowing that the company's dealings with conventional banks are still unclear?

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Source: FtawySummarized from the full answer at Ftawy · imported Sep 2, 20261 min readAlso available in العربية
The answer

Consuming usury and assisting in it are forbidden and constitute grave sins. A loan that stipulates an increase is unanimously considered forbidden. Ignorance of the Sharia ruling may lift the sin. It is not obligatory to sell the house to repay the usurious loan because the loan contract is not invalidated by the presence of a condition that benefits the lender. There is a concern that the company's transaction might be a ruse for usury.

Summarized from the full answer at Ftawy · imported

Read the full answer on Ftawy
Source platform
Ftawy
Original fatwa ID
19220
Imported
Translation status
Source text, unreviewed
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