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Fatwa CenterCompany Arranged Loan for Purchase of Home
Question
My company is a multinational foreign based company involved in oil and gas exploration and production in Pakistan. My company authorizes its employees to get certain amount of loan only for purchase of home from any loan-providing institution (bank or any other) as per amount sanctioned by company. These institutions (banks etc.) provide loan to employees and also charge certain markup on loan. Employees will return back only principal amount of loan and markup will be reimbursed by the company. Is this process of taking loan OK for Muslims, I mean is the return of principal amount by employee himself and payment of interest/markup by the employer according to Qur'an, Sunnah and Sharia?
Answer
All perfect praise be to Allah, The Lord of the Worlds. I testify that there is none worthy of worship except Allah, and that Muhammad 
is His slave and Messenger.
The procedure mentioned in the question is not permissible since it is considered as approving Riba and cooperating with it. Allah Says (what means): {… but do not help one another in sin and transgression …} [Quran 5:2]
Besides, Jaabir 
narrated that the Prophet said “Allah has cursed the one who consumes Riba (i.e. usury or interest), the one who gives it to others, the one who records it and the one who witnesses it (its transaction).” He added: “All of them are equal in sin.” [Muslim]
You should also inform other Muslims to avoid such practice since it is a serious evil.
Moreover, dealing with usury is declaring war against Allah and His Prophet . So it destroys the money and brings Allah's rage.
For more benefit, please refer to Fataawa, 81460 and 82102.
Allah knows best.
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