What is the ruling on stipulating a percentage on a loan to support industrial projects?
Machine translationRead the Arabic original
Question:
May Allah reward you, Honorable Shaykh. This questioner says that the Savings and Loans Bank offers industrial loans to establishments, but on the condition that 2.5% of the loan amount is provided to support the industrial projects they call for. What is the ruling on this condition?
Answer:
Every loan that brings a benefit is riba (usury or interest). If there is a stipulated increase on the loan, it is not permissible. Leave them alone; do not borrow from them.
May Allah reward you, Honorable Shaykh. This questioner says that the Savings and Loans Bank offers industrial loans to establishments, but on the condition that 2.5% of the loan amount is provided to support the industrial projects they call for. What is the ruling on this condition?
Answer:
Every loan that brings a benefit is riba (usury or interest). If there is a stipulated increase on the loan, it is not permissible. Leave them alone; do not borrow from them.
Source
قناة «العلامة الدكتور صالح الفوزان»، [3436/743] ما حكم اشتراط نسبة على القرض لدعم مشاريع صناعية؟ - الشيخ صالح الفوزان — youtube.com
The Arabic text is a machine transcription of the audio recording.