Turkey’s religious authority forced to clarify fatwa allowing interest-based loans for social housing
Turkey’s Directorate of Religious Affairs, the Diyanet, was recently forced to clarify its fatwa that said interest-based loans for government social housing is acceptable.
The fatwa released Dec 14 was met with many questions and criticisms on social and other media, forcing the religious authority to clarify its decision in a statement on Jan 15.
The Diyanet’s High Council of Religious Affairs clarified that interest is “strictly haram in Islam” but the fatwa was passed considering social housing built by housing authority TOKI for the benefit of lower-income earners who need to turn to lower-cost interest-based loans from government banks.
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Merve Emine Şerbetçi