Borrowing from an Employee Loan Fund

A: If the reality is as you have mentioned, it is not permissible for you to take this loan, because the lender has made it conditional to take an excess for the loan; the aforementioned deductions. It was authentically reported that the Prophet (peace be upon him) said, “Every loan that brings benefit is Riba.” There is Ijma‘ (consensus of scholars) upon this ruling. May Allah grant us success. May peace and blessings be upon our Prophet Muhammad, his family, and Companions.