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Is taking a loan from a bank to establish a company permissible or forbidden?

1 min readAlso available in العربية

If the loan involves interest, it is forbidden to take it for the aforementioned purpose, because dealing with usury is one of the major sins, and it is not permissible except in cases of dire necessity. The Prophet, peace and blessings be upon him, said: "Usury, even if it is much, its outcome is to कमी (decrease)," and "No one increases in usury except that the outcome of his affair is to कमी (decrease)." And whoever gives up something for the sake of Allah, Allah will compensate him with something better.

Summarized from the full answer at Ftawy · reviewed Sep 2, 2026

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