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Loans and giving in charity

Answered according to Hanafi Fiqh by Qibla.com

Answered by Sidi Salman Younas

I am currently a full time student with about $20,000 in student loans but I am also working full time as it is part of my program and get paid well for my work. I have not began paying back my student loan completely but I love giving my money to Islamic charities. Am I allowed to do this while I have a loan which will start charging me interest after I graduate?

Answer:
In the Name of Allah, Most Gracious, Most Merciful

salamu `alaykum

I pray you are well and in the best of health.

It should be known that taking out such a bank loan is impermissible as it entails an element of riba, which the Qur’an has strongly prohibited. You should sincerely repent and try to pay off this loan as soon as possible. Cut down on other unnecessary expenses and economize your spending to ensure the quick repayment of such a loan.

Further, the principle is that it is personally obligatory to fulfill contractual commitments and more incumbent to do so than the performance of recommended and supererogatory works. If giving to charities only further delays you from removing yourself from the harm of incurring interest then it would be obligatory for you to pay off your loan first as “avoiding harm is given precdence to seeking benefit.”

Wasalam
Salman
Approved by Faraz Rabbani

This answer was indexed from Qibla.com, which used to have a repository of Islamic Q&A answered by various scholars. The website is no longer in existence. It has now been transformed into a learning portal with paid Islamic course offering under the brand of Kiflayn.

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