Is it permissible to take a loan from the mandatory provident fund at my institution, knowing that the fund gives interest on employees' balances, with the intention of making a set-off between the interest due to me and the interest calculated on the loan to avoid what is unlawful?

No institution is permitted to compel its employees to save, because it is impermissible to dispose of anyone's money except with their permission, based on the Almighty's saying: (unless it be a trade by mutual consent among you) and the Prophet's (peace be upon him) saying: "The property of a Muslim person is not lawful except with his willing consent." An employee may give permission for this, provided that the funds are invested in what is lawful, and that the profit is shared and not fixed; otherwise, it is not permissible. If the interest is unlawful, it is not permissible to own it; rather, it should be disbursed for charitable causes. As for borrowing from the fund with interest, it is forbidden because it combines two usurious transactions if the interest is unlawful. It is advised to leave work in this institution and seek another job. If that is not possible, the employee should not take interest from savings nor borrow from them with interest, while continuing to search for another job.