What is the ruling on a loan that brings benefit?

The well-known principle among scholars is that any loan that draws a benefit is forbidden. More than one scholar has reported a consensus on this matter.

A loan with interest is forbidden, and it is usury (riba), based on the Prophet's (peace be upon him) saying: "Every loan that draws a benefit is usury."

Accordingly, any loan or advance that draws a stipulated benefit is usury and is impermissible.