Borrowing from banks with interest borne by the entity
Machine translationRead the Arabic original
Question:
This questioner says: Some government entities require their clients to go to banks regarding loans, and these entities bear the riba (usury or interest) payments, while the client pays only the principal of the debt. Is it permissible for the client to enter into such transactions?
Answer:
No, it is not permissible. This is cooperation in sin and aggression; it is cooperating with the bank to obtain riba (usury or interest). This is not permissible. Every loan that yields a benefit is riba. Yes.
This questioner says: Some government entities require their clients to go to banks regarding loans, and these entities bear the riba (usury or interest) payments, while the client pays only the principal of the debt. Is it permissible for the client to enter into such transactions?
Answer:
No, it is not permissible. This is cooperation in sin and aggression; it is cooperating with the bank to obtain riba (usury or interest). This is not permissible. Every loan that yields a benefit is riba. Yes.
Source
قناة «العلامة الدكتور صالح الفوزان»، أسئلة اللقاء المفتوح [29-7-1440] مع صاحب المعالي العلامة صالح بن فوزان الفوزان بجامع الرحمانية — youtube.com (20:19)
The Arabic text is a machine transcription of the audio recording.