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Is it permissible to take out an interest-bearing loan from American banks to finance a project for producing halal food products for Muslims?

1 min readAlso available in العربية

Interest-bearing loans are forbidden, and usury is one of the grave, destructive sins that warrant war from Allah. Those who engage in usury are cursed by the tongue of the Messenger of Allah, peace and blessings be upon him. Starting a project is not a Sharia necessity that permits taking interest-bearing loans. Necessity is a state of danger or severe hardship where harm to life, limb, honor, mind, or wealth is feared, thus making it permissible to commit what is forbidden to avert harm. Therefore, it is not permissible to take interest-bearing loans for such a project.

Summarized from the full answer at Ftawy · reviewed Sep 2, 2026

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