The company charges a monthly payment

A: What has been mentioned in the terms is a loan offered by the company (Part No. 13; Page No. 423) to the employee for the purpose of building a home for personal use, so that afterwards, the company retrieves the loan in the form of monthly installments deducted from his salary. It has been mentioned in the third and the seventh conditions what implies that the company adds interest on these loans. Accordingly, this loan is impermissible, for it charges interest (and every loan which brings interest is Riba (usury), also because of what has been mentioned regarding the condition having to cover the house by insurance in the fifth and sixth terms, and this type of insurance is impermissible. May Allah grant us success. May peace and blessings be upon our Prophet Muhammad, his family, and Companions.