Can i take a loan with interest, as my company will reimburse me the interest?

Answered according to Hanafi Fiqh by

Assalaamu Alaikum,
I have a fiqh question to ask concerning mortgage loans. I know it is Haram because of the interest we have to repay along with the money borrowed. However the company I work for  have given certain benefits to their employees
One such benefit is that they will subsidies the interest on mortgage loans up to a certain Percent and up to a certain amount of the principle borrowed.

My question is as follows:
Would it then be allowed for me to take a loan for $450,000.00 at a rate of 8% per annum, seeing the company will fully subsidies the interest meaning that whatever interest I would be paying, the company will pay me back the same amount , until the period of the loan comes to an end ?


Wa Alaikum Assalaam,

It should be understood that for a Muslim, it is Haraam to get involved in, and to enter a transaction in which one agrees to pay interest. In the question asked, it is evident that you will agree to pay interest and you will also be paying interest. The only difference here is that whatever interest you have paid, your company will re-imburse you.

As such, it will not be permissible for you to enter such a transaction.

And Allah Knows Best

Mufti Waseem Khan


This answer was collected from, which is operated under the supervision of Mufti Waseem Khan from Darul Uloom Trinidad and Tobago.

Find more answers indexed from:
Read more answers with similar topics: