Fatwa No : 80523
Ruling on availing industrial loans from banks

Ruling on availing industrial loans from banks

What is the ruling on taking an industrial loan from a bank? Is this loan based on interest?

الجوابُ حامِدا ًو مُصلیِّا ً

Taking and giving interest (both matters) is a major sin, and very strict warnings are recorded in Sharia on involving in interest-based transactions, hence it is necessary to completely avoid from involving in interest-based transactions with a bank or any other institution or person.
However, if it is totally impossible to manage the business without taking a loan, then in that case a Qardh e Hasana (loan without interest) should be taken from someone else, and if this is also impossible, then adopt a proper mode of Musharaka or Mudaraba in business, which will bear Baraka and blessings and be a relief from such interest based cursed transactions.

مأخَذُ الفَتوی

قال الله تعالى: ﴿وَأَحَلَّ اللَّهُ الْبَيْعَ وَحَرَّمَ الرِّبَا فَمَنْ جَاءَهُ مَوْعِظَةٌ مِنْ رَبِّهِ فَانْتَهَى فَلَهُ مَا سَلَفَ وَأَمْرُهُ إِلَى اللَّهِ وَمَنْ عَادَ فَأُولَئِكَ أَصْحَابُ النَّارِ هُمْ فِيهَا خَالِدُونَ﴾ (البقره: ۲۷۵)۔