the government of Germany is temporarily offering a subsidized loan to families with children via the KfW bank to buy their first energy efficient flat or house. The annual effective interest rate starts from 0.01% p.a. and quoted on average at 0.25% p.a. for a 25-year loan. Is it halal to use the government support with such low interest rates, considering that it is not a profit oriented bank activity, but rather a governmental support in high inflation periods?
Many thanks for your support and guidance. JazakAllahu Khairan.