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Is it permissible to take out an interest-based loan through a bank for business expansion?

Answered as per Hanafi Fiqh by Darulifta-Deoband.com
janab salam, i am a running a trading firm sucessfully. but now i want to expend my bussiness but due to shortage of fund i want to make intrest based loan through bank,is it correct? please give me correct path. allah hafiz

Answer

(Fatwa: 1277/1214=B/1430)

Taking loan on interest is permissible only in exigent cases; it is not permissible for expanding business. You should keep on running the company which you now run successfully, Allah shall give barakah in it and avoid using interest money as much as possible.

Allah (Subhana Wa Ta’ala) knows Best

Darul Ifta,
Darul Uloom Deoband

This answer was collected from the official ifta website of Darul Uloom Deoband in India.

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