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The question

"Is it permissible to take loans from an investment authority in Libya that supports projects in Africa with an interest rate of 4%, with a grace period of two years and repayment over three years, for service projects? "

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Source: FtawySummary from Ftawy's records · added here Sep 2, 20261 min readAlso available in العربية
The answer

Praise be to Allah. It is not permissible to borrow with interest from any entity, whether for service projects or otherwise, because borrowing with interest is forbidden and it is considered usury which is prohibited in the Book of Allah. Any increase stipulated on the principal amount is considered usury and must be avoided, regardless of whether it is called interest, return, or commission, as the consideration is in the facts, not in terminology. Scholars have unanimously agreed that stipulating an increase or gift on the loan is considered usury.

Summary from Ftawy's records · added here

Reviewed by El Fatwa's sharia committee.

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Where this answer came from
Source platform
Ftawy
Original fatwa ID
49009
Added here
. This is when the answer was added to El Fatwa, not the fatwa's date.
Text
Summary from Ftawy's records, reviewed by El Fatwa's sharia committee.
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Read the full answer on Ftawy