Assalamu Alaikum & Eid Mubarak
Due to the Coronavirus, the uk Goverment has introduced the Bounce bank loan scheme. More can be found here; https://www.gov.uk/guidance/apply-for-a-coronavirus-bounce-back-loan
Under the scheme, there is no interest or fees to pay on the loan for the first 12 months. So the loan is interest free and backed 100% by the government and the loan is available via lenders.
But, all interest for the first 12 months is paid off by the Government
Would such loans be permissible?
Wasalam
May Allah bless you.
This question has been answered already by Mufti Faraz. Please see the link below:
As-salÄmu āalaykum wa-rahmatullÄhi wa-barakÄtuh. I wanted to enquire regarding the the government bounce back loans for businesses, whether they are halal. They are interest-free for the first 12 months as the govt have said they will pay interest on them for the first 12 months, after which business will have to repay including interest. If a business takes the loan and pays it back within 12 months would it be halal?
So, this weak soul has also studied Alhamdulillah, but I just wanted to seekā¦
Regards
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