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Search Fatawaa


Subject : Ruling on Leasing a Property to a Usurious Bank

Fatwa Number : 3250

Date : 22-11-2016

Classified :

Fatwa Type : Search Fatawaa


Question :

My grandmother leased a property to a usurious bank. After she passed away, we gave the bank a judicial notice to abandon the property, but the bank`s administration asked for a one-year extension. Is it permissible to agree to that?, Or should we continue with the court procedures, knowing that they will take one year? Moreover, is it permissible for my mother not to inform her nephews about this since they own 5% of the leased property? And what is the ruling on the rent, which is taken by my mother, since she hadn`t leased the property in the first place?



The Answer :

All perfect praise be to Allah, The Lord of The Worlds, and may His blessings and peace be upon our Prophet Mohammad and upon all his family and companions.


It isn`t permissible to lease a property to a usurious bank because Allah, The Almighty, has forbidden usury. He said, " Those who devour usury will not stand except as stand one whom the Evil one by his touch Hath driven to madness. That is because they say: "Trade is like usury," but God hath permitted trade and forbidden usury."{Al-Baqara/275}. In addition, it is forbidden to help one another in sin because Allah, The Almighty, said in this regard: " but help ye not one another in sin and rancour: fear Allah. for Allah is strict in punishment. "{Al-Mai`dah/2}.


Accordingly, the bank must abandon the aforementioned property immediately unless there are legal or administrative impediments that the owners of that property can do nothing about. However, in case abandoning the property wasn`t possible, then it takes the ruling of a usurped item where the owner is permitted to receive the rent during the period of usurpation because the usurper (Bank) must guarantee the usurped property and pay a rent equal to that of similar properties.


In conclusion, it is permissible to take the rent as long as the bank is benefitting from the property. However, heirs should be notified about the above, and should have accord and satisfaction with each other because they are partners and have a legal right in that property. And Allah knows best.







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