Is it permissible to spend the remaining loan amount (5,000 Italian Lira) on needy relatives in Egypt, knowing that the borrower is not their provider?

If the loan is interest-free, it is permissible to benefit from it and spend it on siblings, and this is a rewarded act of maintaining kinship ties. However, if it involves interest, then repentance and cancellation of the transaction are obligatory. If you are forced to complete it, returning the interest becomes a necessity, and there is no sin upon you for it; the sin is upon them. You must not return to such usurious dealings.