I requested a loan from one of the banks, and he said: You have to pay an additional 1,350 riyals as administrative fees?

Question:
He says: Honorable Shaykh, may Allah grant you success. I applied for a loan from one of the banks, and he said I have to pay an additional 1,350 riyals as administrative fees. Is it permissible for me to pay these fees while taking the loan?

Answer:
The good loan is that the amount is paid to you, you benefit from it, and you return it without any increase. This is the good loan. But if there is an increase with it, that is riba (usury or interest). The Prophet (peace and blessings be upon him) said: Because the purpose of a loan is not investment. A loan is not taken for investment; its purpose is to be kind. It is a contract of kindness for the one in need, who benefits from the money and then returns it. The lender gets the reward and the recompense. This is the purpose. He does not take an increase under any name, whether fees or charges.
Nor, for example, does the lender live in the borrower's house for free, or ride in his car for free, or lend it to him and say, "Benefit from it," or give him his property and say, "Use it until you pay me back." All of this is invalid. Any loan that brings a benefit, whether material or non-material, is riba, except for the reward from Allah the Exalted for the lender. Yes. Yes.