Paying interest from scholarship

Answered according to Hanafi Fiqh by Darulifta-Deoband.com
I borrowed a loan from a bank which charged me interest. I was about to receive a scholarship from government, from which I thought I would pay the interest and if possible the whole loan too. Is this permissible? Will it still be sinful for paying interest?

بسم الله الرحمن الرحيم

(Fatwa: 323/233/SN=3/1439)


As it is unlawful and sin to take interest in the same way it is also unlawful and sin to pay it. One shall continue getting sin until one keeps on paying interest. However, you may pay your interest with the amount of your scholarship as you are its owner. When you have paid off the loan then you shall get no sin. However, it is mandatory for you to do taubah and istighfar for this unlawful practice which you committed by taking loan.

Allah knows Best!

Darul Ifta,
Darul Uloom Deoband


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