What is the ruling on borrowing money from an association that charges administrative fees (7% or 8%) in addition to the repayment of the principal amount of the loan, whether that is through a mechanism of paying 40% of the installments first to obtain the loan, or through a monthly lottery?

Borrowing in the first scenario is prohibited because it stipulates an upfront payment of 40% of the loan, which constitutes a loan that draws benefit for the association. Also, the stipulation of paying 7% of the loan amount is clear usury, because every loan that draws a stipulated benefit for the lender is usury. As for borrowing in the second scenario, it is prohibited because it includes the two aforementioned prohibitions, whether the borrower pays 40% of the loan and then lends it at a 7% interest, or pays 8% interest on the loan. Therefore, the association's system is based on prohibited usury, and it is not permissible to participate in it.