Islamic banking taking out a loan if you have taken out loans from the bank you know that the bank generally offers three kinds of loans the first are the loans on which one has to pay a small extra amount usually no more than 4%, which is charged in return for the services that the bank provides. Getting this kind of loan is permissible. The second are the kinds of loans which are offered based on one of the fixed Islamic contracts, including contracts of Mudarabah, Ju'alah, Wakalah, and Shirakah (partnership). If the necessary conditions of one of these contracts are observed, taking out such loans is permissible, and the bank can also charge interest on them. However, it must be kept in mind that when a loan is taken out for a specific purpose based on a contract, it must be used for that same purpose. The third kind of loans are those which are offered by non-Muslim and non-Islamic banks, on which one has to pay interest. Taking out these loans is impermissible unless when it is absolutely necessary and one has no other way.