What is the ruling on taking a loan of 3,0 dinars, to be repaid in installments over 50 months, with each installment being 60 dinars, and a 2% interest on the amount, from which one is exempt if the last 10 installments are paid in a lump sum in the forty-first month?

Borrowing with interest, whether little or much, is Islamically forbidden because it is usury (riba). Allah has forbidden usury and was very stern about it, citing the noble verse: "O you who have believed, fear Allah and give up what remains [due to you] of usury, if you should be believers. And if you do not, then be informed of a war [against you] from Allah and His Messenger. But if you repent, you may have your principal – [thus] you do no wrong, nor are you wronged."

This loan involves two prohibitions: The first is acknowledging and accepting usury, and agreeing to the forbidden conditions in the contract. The second is assisting the lender in usury, which is forbidden by the Qur'an's text: "And cooperate in righteousness and piety, but do not cooperate in sin and aggression."