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15 / 05 / 2026
Ruling on Disaster Loans
I live in America, and there are loans provided by the government to citizens for emergency situations called disaster loans, for business owners affected by the quarantine. This loan is conditional on being used for business-related activities, and its value - the same amount borrowed - is to be repaid within an agreed-upon time. If repayment is delayed, a 50% penalty of the loan amount is incurred. It is worth noting that freelance work has come to a halt there, putting them at risk of bankruptcy if the loan is not taken. What is the ruling on this loan, our esteemed doctor?
Answer
I say, and with God's help: It is generally lenient in non-Muslim countries regarding contracts. If there is a very apparent necessity and there is no other solution available to them, it may be permissible. Nevertheless, you should verify with trustworthy individuals in their countries, as they know the reality of the matter better. And God knows best.
