The government gives a loan and the bank it is transferred to takes a percentage
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Fatwa number ( 20957 )
Q: We live in Austria and here the government allows us to obtain a sum as a grant for businesses. Initially, the government transfers us to a bank that takes from us (1%) as fees for mail, fax, telephone, and so on. This amount that the bank takes has no connection to the amount we receive; it is a fee for mail, telephone, and so on. For example, we will receive an amount of about (1000 dollars) and we will return only (1000 dollars) plus (1%) as fees for mail, fax, telephone, and other things, and this
is what the bank receives in exchange for these expenses. The question here now is: Are these expenses considered riba (usury or interest) or not? May Allah reward you with good for the answer .
A: This percentage taken on the debt by the aforementioned bank is riba (usury or interest); because its reality is returning the money with a known increase, and this combines riba al-fadl (usury of excess in a like-for-like exchange) and riba al-nasi'ah (usury of deferment), and both are forbidden (haram) and it is obligatory to leave dealing with them. And success is from Allah, and may Allah send prayers and blessings upon our Prophet Muhammad, his family, and his Companions.
Q: We live in Austria and here the government allows us to obtain a sum as a grant for businesses. Initially, the government transfers us to a bank that takes from us (1%) as fees for mail, fax, telephone, and so on. This amount that the bank takes has no connection to the amount we receive; it is a fee for mail, telephone, and so on. For example, we will receive an amount of about (1000 dollars) and we will return only (1000 dollars) plus (1%) as fees for mail, fax, telephone, and other things, and this
is what the bank receives in exchange for these expenses. The question here now is: Are these expenses considered riba (usury or interest) or not? May Allah reward you with good for the answer .
A: This percentage taken on the debt by the aforementioned bank is riba (usury or interest); because its reality is returning the money with a known increase, and this combines riba al-fadl (usury of excess in a like-for-like exchange) and riba al-nasi'ah (usury of deferment), and both are forbidden (haram) and it is obligatory to leave dealing with them. And success is from Allah, and may Allah send prayers and blessings upon our Prophet Muhammad, his family, and his Companions.
Source
www.alifta.gov.sa
The Arabic text is copied verbatim from the original source, without any edits.