Answered by Shaykh Faraz Rabbani
If an institute like a university offers students loans while they attend school, and will not charge interest until after 6 months of graduation, is it ok to take the money. Reason why I ask this is my friend has major credit bills and they are being charged interest, and I wanted to give them the loan money so they don’t have to pay interest.
Answer:
Walaikum assalam,
In the given case, it would be permissible to take out the loan only if:
1. You are determined to pay it back before any interest accrues on it;
2. You are sure that you will have the financial means to pay it back before the interest accrues on it.
And Allah knows best.
Wassalam,
Faraz Rabbani