Is assessing the land and taking interest on the final installments of its purchase from the bank considered usury?
Source: FtawySummarized from the full answer at Ftawy · imported Sep 2, 2026
If the bank lent you money to purchase the land, and stipulated interest to be calculated on the value of the land at the time of the last installment payment, then this is an usurious loan and is impermissible. If the bank sold you the land on a Murabaha basis, and stipulated that its profit margin would be determined based on the value of the land on the day the installments conclude, this is also impermissible due to the uncertainty of the price. Loans with usurious increments are forbidden. However, purchasing land from the bank on a Murabaha basis is permissible under specific conditions and regulations.
Summarized from the full answer at Ftawy · imported
Read the full answer on Ftawyhttps://ftawy.com/en/questions/129618
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- Ftawy
- Original fatwa ID
- 129618
- Imported
- Translation status
- Source text, unreviewed
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- Read the full answer on Ftawy