What is the ruling on the transaction proposed by the government for granting agricultural real estate loans with a maximum limit of 250,000 dinars, for a period of 25 years including a 7-year grace period, and a 3% surplus, with the distribution of the surpluses from the grace period years over the remaining installments, and the condition of self-financing no less than 5% of the land price and 10% of the cost of development works?

If the state grants a real estate loan with a 3% interest rate, then this is an usurious loan, which is Haram (forbidden) by consensus. Usury is one of the gravest sins, for which war has been declared by Allah and His Messenger, as stated in the verse from Surat Al-Baqarah. The Messenger of Allah, peace and blessings be upon him, cursed the one who consumes usury, the one who feeds it, its scribe, and its two witnesses.

Whoever has fallen into this loan must repent to Allah Almighty by feeling remorse and resolving not to return to it. They are not required to dispose of the money or the land, because a usurious loan is owned by the borrower despite its prohibition, according to the schools of thought of the Hanafis and Hanbalis, and one opinion among the Shafi'is.