Is it permissible to take out a loan from a bank to purchase a housing unit when the current unit is causing harm to the family and to oneself? Is it permissible to take out a loan to establish a commercial project? And is it permissible for a friend to take out a loan from the bank on behalf of someone else to repay their debt in exchange for reducing that debt for the debtor?

Borrowing with interest is forbidden unless there is a compelling necessity, such as buying a house if a person cannot find accommodation for rent or by other means. However, borrowing with interest to establish a commercial project is forbidden, while borrowing without interest is permissible.

As for borrowing to pay off a debt: - If the debt is due: It is permissible for the borrower, if affluent, to repay the money from their own funds or with an interest-free loan. It is also permissible for the creditor to waive part of the debt if they agree. - If the debt is deferred: It is not permissible for the creditor to waive anything in exchange for accelerating the payment of the debt (the issue of "reduce and accelerate"), because it is the forbidden usury of Jahiliyyah, as it is considered a reduction in exchange for deferment. - If the debtor is in straitened circumstances: They are not obligated to borrow to pay off the debt, but it is permissible for them to borrow without interest to pay off the due debt if the creditor waives part of it.