Is the interest of no more than 2.5% on a repayable loan to a released prisoner, provided by the Ministry of Prisoners, permissible or forbidden?

Usury is forbidden by Islamic law, whether it be little or much, and it is not permissible to enter into a contract that includes it. Calling usurious interest "service fees" does not change its true nature, for what matters are the realities, not the names. Actual fees associated with the cost of processing a loan are permissible if they are a fixed amount and not linked to the loan amount or its duration. However, if the increase is a percentage of the loan amount, then it is forbidden usurious interest, and it is not permissible to take out a loan that includes it, except out of a recognized necessity, which is estimated by its extent and ceases when it ceases.