Is it permissible to benefit from an interest-bearing loan to renovate a house if the municipality will seize the house in case of refusal?

Loans with interest are usury (riba), which is forbidden, regardless of whether the interest is small or large. Allah has warned those who engage in it with war from Him. Despite its severe prohibition, usury is permissible in cases of necessity that lead to destruction or extreme hardship. If you fear harm from the municipality to your house and find no other means, then it is permissible for you to benefit from an interest-based loan due to necessity.