I am un employed , my banker is providing me bank loan of 25 lacks in which a subsidy of 5 lacks is provided. i have to repay only 20 lacks with 7% of intrest i.e. approx 24 lacks 20 thousend in three years. can i use this loan for starting a business.
Answer:
(Fatwa: 2122/B=1726/tb=1431)
If you will not have to pay interest amount separately and the subsidy amount will suffice for the interest of bank, you can invest that loan amount in your business.
Allah (Subhana Wa Ta’ala) knows Best
Darul Ifta,
Darul Uloom Deoband