If the person purchases some sheep to breed them, and brings them to the bank then honestly tells the bank the price at which he purchased the sheep, and the bank gives him the value of the sheep as an interest free loan, it is a permissible transaction and there is no doubt about it. However, if the loan is given with interest, it is not permissible to take it. As for the person who brings the sheep he already owns and tells the bank that he has purchased them from the market at the price which the bank has determined just to get the loan, he is telling a lie which a Muslim should not do. In fact this person should fear Allah (Exalted be He) and remember Him. (Part No. 14; Page No. 115) May Allah grant us success. May peace and blessings be upon our Prophet Muhammad, his family, and Companions.