Interest-bearing Loans for Business
Question:- If a person does halal business by taking interest-based loan from a bank, will the profit from his business be halal? Can we eat at such a person’s home?
Answer:- In this case, the ruling is that usury, whether it is in the form of borrowing or lending, is by no means correct and permissible, because the Holy Qur'an and the Prophetic Hadiths have very strict commination on usurers. Therefore, it is necessary to avoid interest-bearing transactions in any case. However, if a person has taken an interest-bearing loan and has done legitimate and halal business with this money, then the income earned from such person's halal business will be permissible. And there is room for eating food in the house of such a person, but the sin of borrowing at interest will remain on him in any case.
