Question: What is the ruling on subsidies provided by the government, like loans where the government pays part and the borrower pays the rest with interest?
Answer: Subsidies come in various forms, and their rulings depend on the specific circumstances. Generally, government subsidies, like those for gas or Hajj, are permissible. However, the type of subsidy you mentioned involves interest-based loans, which is not permissible.
One reason is that taking loans from interest-based banks supports riba (usury). Additionally, even with subsidy loans, interest is involved, making such loans impermissible in Islam.
Respondent: Sheikh Maqbool Ahmed Salafi Hafizahullah
Jeddah Dawah Center, Saudi Arabia
Interpreter: Hasan Fuzail
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