What is the ruling on taking a personal loan from an Islamic bank, whereby the bank purchases goods from the borrower's relative, then sells them to the borrower, on condition that the borrower returns the goods to his relative after his relative receives the price of the goods from the bank?

This action is impermissible due to its involvement in circumvention of usury (riba). Prohibited stratagems increase sin and do not transform the unlawful into the lawful. The detrimental effects for which usury was prohibited are present in these transactions. One must repent to Allah Almighty and frequently seek forgiveness and perform righteous deeds. As for the money obtained from this transaction, it must be returned if possible. Otherwise, it is permissible to benefit from it, because the sin is attached to the person's responsibility (dhimma) and not to the money itself.