The ruling concerning working in companies dealing with banks of usury | The official website of Sheikh Muhammad Ali FERKUS
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Wednesday 15 Shawwâl 1445 H - April 24, 2024 G

Fatwa n° 255

Category: Fatwas about financial transactions – Hiring

The ruling concerning working for companies
that deal with interest-based banks


I would like to ask about the ruling concerning working for companies that deal with banks, i.e., companies operating in commercial and industrial fields, but they resort to the banks for credits which they need for their daily operations. May Allah reward you.



All praise is due to Allah, the Lord of the Worlds. Peace and blessing be upon whom Allah sent as a mercy to the Worlds, upon his Family, his Companions and his Brothers until the Day of Resurrection:

If these companies stem from the interest-based banks, or are primarily based on usury loans, and carry out their usury transactions with the banks on a permanent and continuous basis, then it is neither permissible to work for them nor with them, because that entails a cooperation in their unlawful usury transactions with the banks, particularly if the one works as an accountant asking usury loans for his company. However, if these companies do not rely on the banks as a permanent destination, then if the worker finds other companies, he should take precautionary measures for his religion; but if he did not find, then it is permissible for him -when compelled by necessity- to work therein due to the fact that it is a general calamity and that he is in dire need- since the basic work of the companies is permissible.

This being said, if he works with such companies, then he has to disapprove of the dealings of his company, in the form of usury loans taken out from the banks; but rather he should deny that without neither desiring [it] nor transgressing, so that he will not incur sin by his dependence to the company, pursuant to the hadith of the Prophet صلَّى الله عليه وآله وسلَّم: “If a wrong deed is committed on the earth, then the one who witnessed and hated it (in another version: condemned it) is like who has not witnessed it. Conversely, the one who did not witness that wrong deed but just approved of it, is like who has witnessed it(1).


The perfect knowledge belongs to Allah عزَّ وجلَّ; and our last prayer is all the praises and thanks are to Allah, the Lord of the Worlds, and prayers of Allah are to Muhammad and his Family, Companions and Brothers until the Day of Resurrection.


(1) Reported by Abû Dâwûd (4345) from the hadith of Al-‘Urs Ibn ‘Amîra Al-Kindî رضي الله عنه. This hadith is judged good (Haşan) by Al-Albânî in “Sahîh Al-Jâmi‘ ” (689).