Is it permissible to finance a project through a bank with a Murabahah contract, given that the bank deals with Riba (usury) in addition to Islamic transactions?
Source: FtawySummarized from the full answer at Ftawy · imported Sep 2, 2026
There is no objection to financing the project through Murabaha, provided that it adheres to the Shariah conditions, which are: the bank truly owns and takes possession of the commodity before selling it to you, the contract is free of a penalty clause for late payment, and any previous contractual link between you and the original seller is nullified. It is permissible to conduct this Murabaha with a usurious bank, because dealing with a usurer through buying, selling, and other inherently permissible transactions is permissible.
Summarized from the full answer at Ftawy · imported
Read the full answer on Ftawyhttps://ftawy.com/en/questions/17760
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- Ftawy
- Original fatwa ID
- 17760
- Imported
- Translation status
- Source text, unreviewed
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- Read the full answer on Ftawy