# Is bank loan permissible when we get a huge amount as subsidy on loan

**Institution:** Darul Ifta Kauzariyya
**Category:** Transactions & Dealings
**Madhab (School):** General/Other
**Mufti / Jurist:** Mufti Mohammed Adil Al Kauzari
**Published Date:** January 01, 1970
**Canonical URL:** https://mail.daruliftakauzariyya.com/fatwa-archive/1030-Is-bank-loan-permissible-when-we-get-a

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## Question

السلام عليكم ورحمةالله و بركاته Respected Ustad,  I am running an industry since last 3 years. The concerned govt. department will assist the industry by providing 40 percent of the project cost as subsidy. However, it is available only if we take bank loan.  In my case the project cost is 8 Cr and as such the subsidy amount is 3.2 Cr. If I take 4.5 Cr loan, I have to repay only 1.3 Cr plus its interest since the subsidy amount will be transferred to the bank immediately on availing the loan.  I would like to know whether it is permissible in Holy Shari'a to take bank loan in such a situation.  Wassalam,  Abdurraheem

## Answer / Fatwa Ruling

Such loans are permissible in shari'a.Because, according to the scheme of subsidy we do not have to pay more than the amount we borrowed. The interest forbidden by the Islam is to pay more than the amount borrowed.

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