Bank Loan for Business

Answered according to Hanafi Fiqh by

Q: I like to know whether taking a bank loan to open a business is allowed or not. If not, how else one can start a business in this country Australia?

A:Taking a loan on interest is only allowed under extreme circumstances. Starting a business does not fall under this category. Thus it would not be permissible to take an interest bearing loan to start a business.

Council of Ulama Eastern Cape