Will one who takes out an interest-bearing loan for the benefit of his family, without personally profiting from it, be punished for it? Is this considered unlawful for his family, and what is its expiation if that is the case?
A loan with interest is forbidden, and it is usury itself. One must offer sincere repentance for dealing with it. If it is possible not to pay the usurious interest and suffice with paying only the principal, then that is what must be done, in accordance with the Almighty's saying: "And if you repent, you will have your principal. Do not wrong and you will not be wronged." However, if refraining [from paying the interest] will lead to harm, then it is permissible to pay it, and the sin is on the one who forced its payment. There is no expiation for one who deals in usury except sincere repentance, seeking forgiveness, and increasing good deeds. It is permissible for his family to use and reside in the apartment.
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- 47676
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