Is it permissible to lend money to someone who is taking an interest based loan from a bank to purchase a house?
In the name of Allah, the most Beneficent, the most Merciful.
It is permissible to lend the money. One is not responsible for the actions of the person the loan was given to.
A comparison can be made with a ruling which can be found in the books of fiqh. Imam Quduuri (RA) relates a ruling that “it is permissible to sell grape juice to someone who you know is going to make it into wine.” (Mukhtasar Quduuri p.248)
From this text of Imam Quduuri’s Mukhtasar we can derive a ruling which is that something which has or can be used for lawful purposes, it is permissible to sell. (Taqrir Tirmizi p.221 v.1 & Takmilah Fathul Mulhim p.551 v.1)
Only Allah Knows Best
Mohammed Tosir Miah
Darul Ifta Birmingham