Bounce back loan

[Ed_Has]

Salam aliakum, Is the goverment backed bounce back loan halal?

[Mufti_Billal]

Wasalam

May Allah bless you.

Please see the link below:

Business Question: Is the Government business bounce bank loan halal or haram?

Wa alaykum salaam, My thoughts are that the loan is not Shariah compliant and that this should not be an option unless an absolute necessity. Kindly see this post for more information on when a business can potentially consider such options: https://www.islamicfinanceguru.com/general/what-the-chancellors-350bn-package-means-for-muslim-businesses-a-fatwa/ The reason why it’s an issue is that you are entering an interest-based loan from the outset, and the government is assuming the responsibili…

Regards