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Interest free loan permissible in islam?


If a person have idea about any business but he have no money to invest can he take intrest free loan to start business is interest free loan permissible in islam?


Salamun Alaykum

Thank you for the query

In Islam, there is no problem in getting the interest free loan.

Interest according to Ayatullah al-Udhma Sayyid Ali Sistany:

Ruling 2302. Giving interest (ribā), just like taking interest, is unlawful, but the loan itself is valid. Someone who takes a usurious loan becomes the owner of it but the lender does not become the owner of the extra that he takes, and any use he makes of it is unlawful. Furthermore, if the lender purchases something with the same item [i.e. the extra item he received in the usurious loan], he does not become the owner of it. And in the event that had he not made an agreement of usury, the borrower would have consented for the lender to use the money, then his use of it is permitted (jāʾiz). Similarly, if due to not knowing the ruling (masʾalah) the lender takes interest and after finding out the ruling he repents, then what he took when he did not know the ruling is lawful (ḥalāl) for him.


Syed Haider