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Is it permissible to deal with a bank to purchase building materials and pay for them in installments?

1 min readAlso available in العربية

If the bank pays the price of goods for the borrower to return to it more than it paid in installments, then this is a forbidden usurious transaction. However, if the bank buys the goods and they enter into its possession, then sells them to the buyer for more than the price it paid in known installments, and does not stipulate a late payment penalty, then this is a permissible Murabaha (cost-plus financing) transaction, in which there is no usury.

Summarized from the full answer at Ftawy · reviewed Sep 2, 2026

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