What is the ruling on microfinance programs that provide small loans to the poor and charge service fees reaching 25% annually? Are these fees considered usury (riba)?

One of the great financial rules is: "Every loan that draws a benefit is usury (riba)," and there is a consensus on its validity. It is not permissible to demand an increase on a debt, whether the lending entity is a charitable service or commercial. However, there is no harm in taking a fixed fee that is not tied to the amount or duration of the loan, in exchange for an actual service provided by the entity to the borrower. Any increase beyond the actual services is prohibited because it is usury.