Ruling on Taking Loans from Some Banks
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Question:
What is the ruling on taking loans from some banks, and is there any danger in that?
Answer:
Loans that involve an increase, and banks do not lend except with an increase, are riba (usury or interest) loans, which are forbidden. A loan does not involve a stipulated increase; rather, it is repaid as it was, without a stipulated increase, and this is called a good loan. As for the investment loan, this is riba (usury or interest), so it is not permissible, and this is what banks engage in.
What is the ruling on taking loans from some banks, and is there any danger in that?
Answer:
Loans that involve an increase, and banks do not lend except with an increase, are riba (usury or interest) loans, which are forbidden. A loan does not involve a stipulated increase; rather, it is repaid as it was, without a stipulated increase, and this is called a good loan. As for the investment loan, this is riba (usury or interest), so it is not permissible, and this is what banks engage in.
Source
www.alfawzan.af.org.sa
The Arabic text is copied verbatim from the original source, without any edits.