Title: Business with bank loan

Question: May Almighty Allah bless you and your team. Dear all, I had a question, I want to start a business. My father is not in a condition that he can arrange full money for my business, he can help me up to 30% of my investment. The question is that can I take the loan from a bank to start or run a new business. Kindly update soon.

Answer ID: 146773Posted on: Aug 30, 2020

Bismillah hir-Rahman nir-Rahim !

(Fatwa: 304/239/L=3/1438)

According to the Holy Quran it is haram to take interest. Allah says in the Holy Quran:

وَأَحَلَّ اللّهُ الْبَيْعَ وَحَرَّمَ الرِّبَا [البقرة : 275]

The Holy Prophet Muhammad (may peace and blessings of Allah be upon him) has cursed those who take interest, give interest, record it and bear witness to it.

Hence it is not lawful to take interest based loan to run the business. You must manage your business with the capital amount available with you, it shall bring prosperity, in-shaAllah.