Written Fatwa
Is it possible to get a loan whose interest is paid by the state?
I will get a loan from a state bank, but the state will pay the interest on the loan. I will only pay the original debt. Does this count as interest?
It does not change the fact that you are paying the interest or that someone else is paying on your behalf. The fact that the government pays the interest does not affect the result either. You will have signed for an interest-based loan. The reason for the interest is your demand. In conclusion, this is an interest transaction.
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