Is it permissible to take out a loan to pay off debts and develop one's business due to straitened circumstances and the fear of work being disrupted?

If the loan is a good loan and involves no usury (riba), then it is permissible, though it is better to avoid it. As for an usurious loan (riba-based), it is forbidden and considered one of the major sins. It is not permissible to take it except out of dire necessity, and developing a shop is not considered a necessity. If the inability to repay a debt leads to harm, such as imprisonment, then borrowing is permissible. An insolvent debtor is not obligated to borrow; rather, the creditor must grant him a delay. For one who intends to repay his debts, Allah will repay them on his behalf. It is recommended to frequently recite the reported supplications for debt repayment.