My friend took some money from a bank as a loan which he has to pay certain amount as interest while settling it back. I am constructing a new house and planning to borrow some money from my friend. Will I be liable for the sin of using a haram money for a noble cause?

All perfect praise be to Allaah, The Lord of the Worlds. I testify that there is none worthy of worship except Allaah, and that Muhammad, sallallaahu ‘alayhi wa sallam, is His Slave and Messenger.

The sin of the loan with Riba (i.e. interest and usury) falls on the person who got the loan and it is not related to the money itself. For more details, please refer to Fatwa 93774.

Accordingly, there is no harm in borrowing some money from your friend to build your house or the like even if the money he will give you is from the loan he took from the bank, provided that he does not stipulate a Riba-based interest regarding the loan he will give you, otherwise, it will be prohibited for you to borrow money from him.

We have explained the prohibition of the Riba-based loan and that it is not permissible for anyone to take it except at the times of the confirmed necessity that allows committing a prohibited matter. For more details, please refer to Fataawa 83762 and 84127.

Allaah Knows best.