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Can I get a subsidized, low-interest loan?

Answered as per Hanafi Fiqh by Darulifta-Deoband.com
If I get loan for business against my property, which is government supported loan which gives me subsidy and less interest, even I have to pay lesser amount than my loan amount. For example I took 25 lakhs, subsidy is 5 lakhs, and interest is 4 lakhs. Just I have to pay only 21 lakhs. Amount will be paid in installments.


(Fatwa: 1177/993/B=1432)

When you receive too much subsidy in loan that you are not supposed to pay interest from your pocket in instalments, rather the loan interest is paid off from subsidy amount, so in this case it is allowable to take loan.

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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