Is Usury On Business Loan Haram?
Pressing need or no need makes no difference in this regards. Business loan, is in fact investment of Bank with the customer, when it is secured by some assets, it is mortgage too, so here two matters are joined, and both are fine. It is in fact Principal secured investment with fixed profit. So it is allowed and halal matter. the only objectionable thing in it is that if the business fails, the bank should demand only the principal amount. Its insistence on taking the profit or increase, is Zulm.