Is it permissible to take out a loan with a simple interest rate from a bank to pay off a debt incurred from a Mudarabah contract, knowing that the borrower is compelled to do so?

It is permissible to agree upon the division of the capital of a Mudarabah (partnership) before its maturation, whether the division is in kind or by value, provided that the value of the capital at the time of division is considered. If it is permissible to divide the capital by its value, then it is permissible for the silent partner's share of the capital and profit to be an obligation on the agent. The agent is not permitted to delay payment while capable. However, if the agent is in financial difficulty, the silent partner should grant him respite until he finds ease, as Allah Almighty says: "And if there is one in [financial] difficulty, then [let there be] a delay until [a time of] ease." [Al-Baqarah: 280]. It is recommended for the silent partner to forgive and waive the debt if he sees the severe hardship of the agent. He is not permitted to compel the agent to take out an interest-bearing loan, though the agent is not permitted to borrow from an interest-bearing bank except in case of necessity.