1 year back I took a loan from a bank here to cover some urgent commitment at that time. Now as I still have 2 years to pay for the loan I regret the decision and read about Riba and how both the bank and I are equally mistaken. According to my reading, I know that the lender should give the extra amount of money paid for interest to Islamic affairs or poor people, but now for me as I am the one who got the loan; how can I get out of this mistake knowing that I do not have money to pay the whole loan now?

All perfect praise be to Allah, The Lord of the Worlds. I testify that there is none worthy of worship except Allah, and that Muhammad is His slave and Messenger.

As a rule, dear brother, it is prohibited to deal with a usury-taking bank. Allah Says (what means): {O you who believe! Be afraid of Allah and give up what remains (due to you) from Riba (usury and interest)(from now onward), if you are (really) believers}. [ Quran 2:278]

Besides, Jaabir narrated that the Prophet said “Allah has cursed the one who consumes Riba (i.e. usury or interest), the one who gives it to others, the one who records it and the one who witnesses it (its transaction).” He added: “All of them are equal in sin.” [Muslim]

If you have deposited your money in a usury-taking bank, then you have to withdraw it and then give the interest to the needy Muslims or in charity. If you have borrowed from the bank, you have to pay the capital only. But if you are forced to pay the interest along with the capital, then Allah will forgive you, Allah willing. If you are not able to pay the debt, pay the installments and turn towards Allah in repentance and be determined not to return to this again.

Allah knows best.