[Is It Permissible for One Under Duress to Borrow from a Usurious Bank?]

The answer—and Allah is the granter of success: Creditors have the right to ask the ruler to imprison the debtor until his insolvency is established. If his insolvency is established, then it is obligatory to grant him respite until Allah makes it easy for him, as He said: “And if someone is in hardship, then [let there be] postponement until [a time of] ease.” [Al-Baqarah:280]. If imprisonment is as we have described, it is not permissible to enter into usury, for in what Allah has decreed there is relief for both creditor and debtor.
If, however, the judge will imprison him until he pays—even after his insolvency becomes clear—then in that case he is like one compelled to borrow from the usurious bank, and what is lawful for one under compulsion is not lawful for others. The jurists have said: under coercion, every prohibited thing is permitted except zinā, killing a human being, and harming him. Allah has excused the one who uttered a word of disbelief under compulsion, saying: “Except for one who is forced [to renounce his religion] while his heart is secure in faith.” [An-Naḥl:106]. If he borrows from the bank in this situation to ward off injustice, it is permissible for him to borrow.
As for borrowing in cases other than what we have mentioned and the like—it is not permissible, nor befitting for a Muslim. The Messenger of Allah—May Allah bless him and his family and grant them peace—cursed usury, its consumer, its payer, and so on.
Source: Min Thimār al-ʿIlm wa al-Ḥikmah vol.2