Brothers: One of them borrows in the name of the other from the Real Estate Development Fund
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Fatwa No. ( 22315 ) Q: My older brother, whose name is Abdullah, and I are partners in a piece of land. Abdullah applied for a loan from the Real Estate Development Fund and obtained a sum of two hundred thousand riyals. He benefited from it by building a residence, and he is currently repaying the bank. The aforementioned loan was taken out in my name, that is, Muhammad’s name, while the beneficiary was Abdullah. Now, I, Muhammad, want to borrow in my brother Abdullah’s name, so that the loan is in his name, that is, Abdullah’s, and the beneficiary is me, Muhammad. The land on which I will build will be in his name or mine, and I will put it in his name solely for the purpose of the loan, since he no longer has a share in the previous land. My question is: Is it permissible for Muhammad to borrow now in the name of his brother Abdullah or not? I seek a ruling on whether this is permissible or not. May Allah preserve you and care for you. And if that is not permissible, what should Abdullah do; should he return to Muhammad what he borrowed? May Allah care for you.
A: What you mentioned is not permissible; because it falls under the category of lying and deceiving the state’s system, which the one in authority established for the benefit of the citizens. The benefit from it must be obtained in a lawful manner free from lying and deception.
Source
www.alifta.gov.sa
The Arabic text is copied verbatim from the original source, without any edits.