Is the rental income from a home financed with an interest-based loan permissible or forbidden?
Source: FtawySummarized from the full answer at Ftawy · reviewed Sep 2, 2026
Borrowing with interest is forbidden in Islam because it is usury (riba). Whoever commits it must repent and not return to it. As for what was bought with this loan, such as a house, a car, and the like, its returns are permissible, because the sin of the loan is attached to the borrower's responsibility, not to the asset itself.
Summarized from the full answer at Ftawy · reviewed Sep 2, 2026
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