If the conventional bank offers a loan on interest, it is not permissible
even if the interest rate is fixed. The Qur’aan expressly prohibits every
form of interest.
However, if the bank proposes to purchase the asset and resell it to the
client on a fixed profit, then it will be permissible. The addition on the
purchase amount will be a profit on sales and not interest.
and Allah Ta’ala Knows Best
Mufti Ebrahim Desai