Yes, it is permissable for a Muslim to borrow from someone in such a situation. The daleel (evidence) for this is that the Prophet (peace be upon him) borrowed from the Jews and they were dealing in riba. Furthermore, in most cases, such a person's income is not totally haram, because it is a mix of earnings gained by selling both halal and haram items. However, you should advise him and clarify to him the Islamic ruling on what he is doing.
Borrowing money from one whose income comprises haram money
Question 58
Is one allowed to borrow money from some one works in a restaurant which
sells haram things? If he borrowed this money already what is the hukm?
Answer
Praise be to Allah, and blessings and peace be upon the Messenger of Allah:
Borrowing & Lending
Source:
Sheikh Muhammed Salih Al-Munajjid
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