What is the ruling on taking a riba (usury or interest) loan where the institution pays the interest?
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Question:
He says that he works at an institution. He works at an institution, and he took a loan from a bank, he took a loan from a bank on the condition that the institution pays the riba interest,
Answer:
and he only pays the principal of the loan, while the institution pays the riba interest for him. This loan is haram (forbidden). This loan is haram (forbidden), even if the institution is the one paying the interest, based on the saying of the Messenger of Allah (peace and blessings be upon him)Bulugh al-Maram 7:99 and the scholars have agreed on what this hadith indicates. Even though the hadith is weak, the proof is the consensus of the scholars that Bulugh al-Maram 7:99 whether the borrower pays the interest, or someone else pays it on his behalf, or as a gift to him, or to help him, it is not permissible. Yes.
He says that he works at an institution. He works at an institution, and he took a loan from a bank, he took a loan from a bank on the condition that the institution pays the riba interest,
Answer:
and he only pays the principal of the loan, while the institution pays the riba interest for him. This loan is haram (forbidden). This loan is haram (forbidden), even if the institution is the one paying the interest, based on the saying of the Messenger of Allah (peace and blessings be upon him)
Every loan, which leads to a benefit, is usury.
كُلُّ قَرْضٍ جَرَّ مَنْفَعَةً فَهُوَ رِبًاEvery loan, which leads to a benefit, is usury.
كُلُّ قَرْضٍ جَرَّ مَنْفَعَةً فَهُوَ رِبًا
Source
قناة «العلامة الدكتور صالح الفوزان»، ما حكم أخذ قرض ربوي بحيث تتولى المؤسسة تسديد الفوائد؟ للشيخ الفوزان — youtube.com
The Arabic text is a machine transcription of the audio recording.