What is the ruling on taking a loan for construction from a company that pays its interest to a usurious bank, while obliging the employee to pay life insurance premiums equal to the loan amount? And what is the Sharia-compliant alternative to that?
It is forbidden to enter into the aforementioned transaction due to the explicit presence of usury within it, and because the company undertakes to pay usury on your behalf, and this constitutes cooperation in sin and aggression, which Allah has forbidden. The Messenger of Allah, peace and blessings be upon him, cursed the one who consumes usury, the one who feeds it, its scribe, and its two witnesses. Furthermore, the transaction includes a life insurance contract, which is forbidden. The legitimate alternative is to enter into a or Istisna' contract with an Islamic bank that operates in accordance with , or to be patient until Allah facilitates the construction of the house.
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- Original fatwa ID
- 46266
- Imported
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