Slms. What is the shariah ruling of allowing staff to take loans from the bank at their own risk.

The bank usually requires a letter from employee confirming his employment with the employer.

No guarantee is given from employer on behalf on employee (staff)

I will attach a sample letter also. Please guide us as these are interest bearing transactions.


Further clarification:

Sorry Mufti Sahib but there is a document (attached – below). We usually do transfer the employee’s salary in his bank account every month, however, when he takes a loan, the bank will want an undertaking from us that we will continue to transfer his salary in the account and if there is any changes, we will notify them etc. You may refer to the document attached.



In the Name of Allah, the Most Gracious, the Most Merciful.

As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.

According to the attached document, you actually undertake to pay the salary for an interest-bearing loan to the bank.

This is clearly assisting in sin, which is prohibited.

Allah Ta’ala says:

وَلَا تَعَاوَنُوا عَلَى الْإِثْمِ 

“And do not assist one another in sin”

(Surah Al-Maaidha, Aayah 2)


And Allah Ta’āla Knows Best

[Mufti] Safwaan Ibn Ml Ahmed Ibn Ibrahim

Darul Iftaa
Limbe, Malawi

Checked and Approved by,
Mufti Ebrahim Desai.

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