What is the ruling on borrowing money for the purpose of giving a gift?

If the loan is usurious (riba-based), it is Haram (forbidden) by consensus. As for a good loan (Qard Hasan), if the borrower finds what to repay the debt with, then there is no harm in it. However, if the debt burdens the borrower and he cannot find a way to repay it, then borrowing is disliked (makrooh) and may be forbidden (haram) in some cases. The basic ruling on borrowing is permissibility for someone who knows he can fulfill the repayment. It is disliked for someone who is not capable of repayment and is not compelled to borrow. It is forbidden for someone who intends to delay repayment or deny the debt. It may become obligatory for someone in dire necessity. It is not permissible for a poor person to feign wealth when borrowing, as this involves deceiving the lender. Debt is a serious matter, and the Prophet (peace be upon him) sought refuge from it. Allah is with the borrower who intends to repay and has the means to settle his debt. As for the overwhelming debt from which the Prophet sought refuge, it is the debt incurred for disliked purposes, or without the ability to repay, or with the intention of denial.