The Lajnah ad-Da’imah was asked the following question:
Please tell me the ruling on taking out a loan from one of the banks that deal in Riba (usury), even though the loan has no interest whatsoever. Is it permissible to take out interest-free loans from these banks?
Answer: If the reality is as you have mentioned; that you took free loan, this is permissible even if the bank gives usurious loans and deals with others in Riba, as your contract with the bank is independent of any other transaction.
May Allah grant us success. May peace and blessings be upon our Prophet Muhammad, his family, and Companions.
The Permanent Committee for Scholarly Research and Ifta’
AbdulFattaah Bin Uthman