What is the ruling on borrowing from an institution that offers interest-free loans and requests $300 as administrative fees for operational expenses, especially given that this amount is significant compared to the local cost of living, and knowing that there is a fatwa permitting this, provided that the amount is not a profitable increase on the loan?

The borrower is obligated to cover the expenses and fees associated with granting and following up on the loan. This is not considered usury (riba); rather, it is like the wages of a measurer or a weigher. The Islamic Fiqh Academy agreed to this, provided that these fees are in exchange for actual services. Any increase beyond that is considered forbidden usury (riba) by religious law. In case of doubt, one should refer to experts. It is permissible to follow reputable scholars if they issue a fatwa permitting it.