I want to study in University, and i wanted to confirm is it halal for me to get a loan from student finance.
Answer:
In the Name of Allah, the Most Gracious, the Most Merciful.
As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.
In principle, it is not permissible for one to take out a student loan since they are essentially interest based loans. Interest loans are impermissible according to Shari’ah.
However, it is understood that most student loans are interest free until a few months before graduation, therefore due to the difficult financial position many university students currently find themselves in, one may take out a student loan and then pay back the loan within a few months of graduation. This can be achieved by working while studying and then paying out the “Student Loan” over a gradual period time within a few months of graduation.
This is what some students do there.
And Allah Ta’āla Knows Best
Moulana Ismail Desai,
Student Darul Iftaa
Durban, South Africa
Checked and Approved by,
Mufti Ebrahim Desai.