What is the ruling of Islamic law on establishing an institution with support from a government agency and an interest-bearing bank loan at 2.16%?

Borrowing with interest is prohibited usury (riba). The fact that part of the borrowed amount is with interest and part without interest does not make it permissible; rather, it all becomes forbidden. The prohibition of the part that stipulated an increase is evident. The other part is prohibited because it is conditioned upon the existence of the first loan, and every loan that brings benefit (to the lender) is usury.

If it is possible to take the loan that does not stipulate an increase on its own, then it is permissible. Otherwise, a Muslim must fear Allah and know that their sustenance will come to them. They should adhere to piety and pursue permissible means. Allah Almighty says: "And whoever fears Allah – He will make for him a way out And will provide for him from where he does not expect." (Quran 65:2-3)