Darul Iftaa Mahmudiyyah

Is it permissible to take a student loan in which the government pays the interest money during the course?

· 3 Dhuʻl-Hijjah 1436 AH1 min readFatwa 34023English

Question

I understand that giving interest is impermissible however please advise for the following situation:
The government provides postgraduate loans through a bank. During the course of study interest is paid to the bank by the government. Following completion of the course the student commences repayment instalments including interest to the bank.
Is it permissible to take the loan with the intention of repaying the loan in full before any interest is due by the individual ?
Is the government's giving of interest sinful for the student as he is the reason the transaction has taken place?
Jazakallah khair

Answer

In the Name of Allah, the Most Gracious, the Most Merciful.

As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.

We do not understand your query. You state during the course of study interest is paid by the government. You then stated, ‘following the completion of the course the student commences repayment including interest to the bank.’

You then ask, ‘is it permissible to take the loan with the intention of repaying the loan in full before any interest is due by the individual?’

If interest is already due and repayment commences, how will one not pay interest.

Clarify the question and situation in detail.

And Allah Ta’āla Knows Best

Bilal Issak

Student Darul Iftaa
Leicester, England, UK

Checked and Approved by,
Mufti Ebrahim Desai.

Answered by
Bilal Issak
Checked & approved by
Mufti Ebrahim Desai
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Source: Darul Iftaa Mahmudiyyah — https://askimam.org/public/question_detail/34023
Fatawa SA: https://fatawa.co.za/fatwa/askimam-34023

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