According to the majority of Muslim jurists, it is totally forbidden to obtain any loan which entails interest. However, some contemporary Muslim jurists state that it is permissible to get an interest-based loan in case of extreme necessity. However, such necessity are to be judged according to the circumstances that warrant it.
Dr. `Abdel-Fattaah Idrees, professor of Islamic Jurisprudence at Al-Azhar University, states the following: “As we know, any loan that entails interest is regarded as usury, something held forbidden by the consensus of jurists in ancient and modern times.
However, some contemporary Muslim jurists maintain that it is permitted to take interest-based loans in case of necessity, such as establishing projects to help people earn living. So if there is no other way to finance the project you are going to establish except by taking loans from the bank, then you can take this loan according to the view of those scholars who permit doing so. But this can be done only if there is no other way to finance the project. But, if none of these lawful ways is found, then a usurious loan may serve as the last resort, taking into consideration that necessity allows only what alleviates one’s suffering.
However, bear in mind that the amount of money you take should be small because necessity allows only that which alleviates one’s suffering. Since the interest-based loan is only allowed for the law of necessity, then necessity is judged according to the circumstances that warrant it, and as such any extra amount of money that exceeds what is deemed as necessary, is not permissible to take as loan.
Based on this, I can say that if one can start business with less than the amount of money they have, then they are not allowed to take more. Also, you should endeavor to the utmost of your ability to find a legitimate way for financing your project away from taking a loan from an interest-dealing bank. This can be done by taking a loan that does not entail interest, by selling some belongings, or by sharing as an expert or as a speculate in other projects, instead of taking a usurious loan.”