in Current Affairs, Education, Featured, Finance, Islamic Law, Latest Islamic, Opinion, Propagation, UK I do not use “substantial” lightly, given that the Islamic ruling of all contracts being permissible as a default rule is a certain one established by undeniable evidence. Is not Islam’s purpose in this regard to judge things based on its own customs? Even in the Quran and hadees nowhere it says bring changes in the Hukm of Allah subhana tala. Assalamualikum. Disproving Mudāraba thus would not render this a riba-based contract. The only option I have is to pay out of pocket or private loan. Now I am left with no option but to get loan under CSLP scheme which bears Interest, and I have to reply till 3 June, 2013. Providing this scholarship through the Islamic Society of North America, allows AMANA Mutual Funds to continue to build upon its principles and provide further support for the American Muslim community. [4] Mudāraba is a partnership in profit whereby one party provides capital (Rab al-Māl), and the other party provides labour (Mudārib). I was one of the initial people who were told student loans would be interest free and found every year they were charging me interest until I paid it off. I do not want to go for OSAP due to interest issue. Please kindly direct me. http://www.1stethical.com/wp-content/uploads/2012/06/alternative-finance-provision-statement-21st-June-2012-1.pdf, http://www.1stethical.com/2012/07/18/lobbying-for-a-halal-alternative-to-student-loans/. I am suffering insecurity at home and at the uni. I am taking only one class for the semester. Jazzakallah Brother/Sister for giving us a voice in this particular topic, wassalamalaykum warahmatullahi wabarakatuh. This rule cannot be overturned based on evidence that is plausible at best, since another established legal maxim states that “Certainty is not cancelled by doubt”. I am NOT opting for Loan under Canada Student Loan Program because it bears Interest, therefore, I AM NOT GOING TO GET THE DESIRED MBA DEGREE. the aim is to keep the value of the money so we can help more Muslim students, without fees or interest. A better population to compare with would be Muslims living as a minority in a Western developed country. I have details of the idea in my mind so if anyone interested, drop me an email at ksjarral82@yahoo.com. About a quarter of all students expressed some unease about student borrowing (though the percentage who specifically mentioned Sharia as the reason was much, much smaller) – but even these students expressed little unease about borrowing, per se – and, interestingly, three quarters of those who expressed unease about student loans had no problems with the idea of a mortgage. Save my name, email, and website in this browser for the next time I comment. All rights reserved |. .I want to get out of here and complete my study in the U.S,but i cant afford it as also all colleges that offer full aid have done accepting students for fall 2014 by march. This ‘fatwa’ is clearly invalid and not even the type of Riba some scholars allowed under the Hanafi…, https://www.islamiqate.com/3337/did-the-prophet-saw-permit-riba-usury-in-dar-al-harb. Any form of financing made according to Islamic law, which forbids the payment or receipt of interest.An Islamic loan may be an interest-free loan, but often it is a more complex transaction.For example, a bank could buy an asset for cash and then re-sell it to the "borrower" for a profit such that the profit is the same as the bank would have made had it extended a regular loan. Unfortunately for Muslims this policy change is not only an economic challenge it is also a moral one, because as we all know Islam forbids dealing in interest and the student loan is … In light of this, without riba, gharar or oppression being a part of the structure, and with real value-adding work being an actual part of the arrangement, I conclude the student loan offering in the United Kingdom to be a permissible one from the perspective of Islamic Fiqh. If you want to help go ahead and write an article, and with clear English please and offer something more beneficial than rants, so we can benefit from the time spent reading! You’ll find that many Muslims in the UK for example, are making strong efforts to lobby for legislation allowing for government-issued shariah-compliant student loans. This is a personal issue for me – not just a series of statistics. Furthermore, if you’re surveying the largest Muslim country in the world – wouldn’t questioning students about whether or not they would get a loan imply – to some degree – that the institution issuing the loan would have a high probability of satisfying Islamic requirements – as part and parcel of being in that country? [4] Given that I have not come across anything conclusive which passes the evidentiary bar of the Sharia to overturn the original ruling of permission for this type of contract in principle, the default ruling would thus persist, and I would therefore agree with Shaykh Haitham al-Haddād’s conclusion, even though I find his framing of the student loan arrangement as a form of Mudāraba unnecessary. Your example is totally different, and obviously would be Haram. Though it is theoretically be possible to create Sharia-compliant student loans, the market for them is tiny, even in Islamic countries. Based on this, for student loans to be considered impermissible Islamically, a scholar would have to prove in a substantial way the presence of the following: – Riba, which is interest (usury) … My earlier response was a bit confrontational – and I do apologize. I am a Muslim brother in US, right now I am on my final semester of my Master degree in information system. October 23, 2016 at 1:34 AM How i got my Desired Loan Amount from a Reliable Loan Company called Adolf Alex Loan … By proceeding, you agree to receive our free email newsletter and accept our privacy policy. Is it possible for the shaykh to name any senior scholars that this fatwa was checked by? This is emphasised by the fact that the entire arrangement requires real economic work, or employment upon a set frame, without which “repayments” cease to be a requirement. It is true that the Sharia mandates forbearance (إنظار المعسر) in case of the borrower being in financial difficulty, but forbearance does not cancel the debt—it still remains and is collected even after death from one’s bequeathed estate. Related. In response the growing student debt as well as in line with the Islamic principle of avoiding interest, The Islamic Society of North America and the Islamic Development Bank created a unique interest-free loans … Islam can never turn into modern Islam. You do not need to research and go into great detail on this matter. See Al Qalam’s overview and research paper for the Islamic viewpoint on student … – Gharar, which is an unacceptable degree of ambiguity in the transaction. so , now i am obliged to seek a college where i do have to show a state funds that shall cover all expenses as i don’t want to lose the semester.if anyone can help me with that or know where can i get an islamic loan or has any helpful information. He has authored several articles and dissertations in both Arabic and English pertaining to the various Islamic Sciences; lectures at Knowledge International University; is the Director of Islamic Development for Mercy Mission World; lectures at AlKauthar Institute as well as heads the Institute's Board, among various other commendable endeavours. As salaam alaykum, If a Muslim takes out a riba-based loan, not knowing of the prohibition on doing so, there is no sin on him regarding what has passed of that. I like Zak’s idea and same can be applied to people who are willing to buy houses, with some tinkering. Your email address will not be published. As such, they do not constitute the description of a debt contract in which the debt actually self-multiplies, as was the case with Riba al-Jāhiliyya (riba during the era of Ignorance before the advent of Islam, which Islam put an end to). One Award of $2500 Finance… I am fanatically searching for Islamic Student loans, otherwise, I will have to REFUSE the offer of pursuing my dream degree. To me there is a clear barrier for access – to which there is an easy solution that will, in your words, take just a bit of tinkering. Tagged with: DEBT FATWA FINANCE HALAL HARAM INTEREST LOAN MONEY RIBA SHARIA SHARIAH STUDENT STUDENT LOANS UK UNIVERSITY. To be “cool” Shaykh. Well said brother we request our scholars to please let the harram remain harram fiding loopholes will not make it halal, Asalamoalikum, it’s a great fitna by dr Sajid. Have you started or know of any by now? WhatsApp Contains Pornography – do your children have it? Sheikh Bilal Philips answers a question about taking student loans. in regard to your specific point about how students interpreted the question, I do think it’s safe to say that the students didn’t assume the loans would be sharia-compliant, because the question made it clear that the loans would be interest-bearing. Very welcome fatwa alhamdulillāh, it is very important we define things from our own sharia rather than just accepting what non-Muslims label as a loan or not. The operation is completed using a non-departmental public body and upon graduating, beneficiaries only begin paying off their “loan” when their earnings reach a set monthly threshold, with “repayments” being set at 9% of a person’s income, with “Interest” being added to the loan from when the first payment is received by the student from the Student Loans Company. http://www.1stethical.com/2012/07/18/lobbying-for-a-halal-alternative-to-student-loans/. And if, like you said, it’s so structurally similar to existing loan systems – then what’s so hard about accomodating a slightly adjusted version for the minorities who would want to use it. You can see the following pages for more information: UK Muslims lobbying and coming to agreements with government for shariah-compliant student loans: http://www.1stethical.com/wp-content/uploads/2012/06/alternative-finance-provision-statement-21st-June-2012-1.pdf Muslim students in non-Muslim countries may be entitled to government student loans to pay their fees and cover their living expenses. Your conclusion that “it’s [reasonable] to dismiss the notion that not offering [shariah-compliant loans] actually represents any kind of barrier to access,” is just plainly inaccurate. Riba jaahiliy is something they all agree on last I checked. Hi Abdurahman – To my knowledge such a product does not exist in Canada, sorry. The maxim defining financial transactions as permissible in Islam implies that there are no limits to the number of possible Sharia-compliant contracts that can exist at any given time, and thus it isn’t a requirement from the perspective of Islamic Fiqh to fit new contracts within the framework of the old ones discussed in the books of fiqh. Why don’t you read and understand the article before commenting?? My colleagues and I at HESA recently saw evidence of this during some work we did related to the introduction of student loans in Indonesia, the world’s largest Islamic country. Every architect has set parameters with which they work by, and they accept that their designs will have flaws and…, The 'Lion of the Desert' etched his name in the annals of history when he valiantly defended his people, their prop…, OVER 10 million people are said to have accepted Islam through his efforts in Africa! Looking forward to reading more of your posts in the future. I know, practically, there would be many hurdles but still for such a bigger cause, if we could work sincerely and honestly towards the cause, we can slowly but surely reach to that goal. I feel uncomfortable with loans that have the potential for interest – such as the interest that is charged after 6 months with OSAP. I know British history based on deception and always buy Muslims scholars to bring changes in Islam due to the fact see Muslims condition with no Eman living in a Muslims land and follow kuffar’s Hukm and ignore deliberately Allah’s Hukm I establish whoever follows his debate and hukum or fatwah on student loan is permissible will r caught on the day of judgement. I read your views on the student loans in the UK and wanted to say JazakAllahu khaira. This is what we call harram taqleed blind following a modern day scholar blindly I am looking for interest free loan in US. This … Head over to our campaign page, An Alternative Mawlid Message from Sh Haitham al-Haddad, https://www.islam21c.com/islamic-law/on-sh-haithams-student-loans-fatwa/, Internalising the Names of Allāh: Al-’Azīz, Is the Arab Spring Dead or Alive? The student loan under consideration, in contrast, is a performance-based or income-contingent financing operation. Student loans have not been much of an option either for Muslims, as many have avoided it for fear of falling into riba (interest). I have no guarantee of getting a job before that 6 month period pops up, and if I don’t, I’ll have to start paying interest – and I have a religious obligation not to do that, which I intend on fulfilling. Did you ask for statements from students showing no interest on their statements? If you can help me in getting Islamic Loan then please mail me at ranaimran82@gmail.com. Sheikh Sajid Ahmed Umar initially pursued a first degree in IT. Find Out More . Rather setup an Islamic loan company and give out interest free loans to students than make the haraam halaal. Ws, How can you allow somethings based on your assumption that Islam looks at things from other people’s customs? And furthermore, it’s a conversation stopper for those who already have so much red-tape to cut through to try and improve the system to accommodate for such loan programs. To upgarde my education I need to do a program at Ryerson. They follow a value-oriented approach consistent with Islamic finance principles. This profit is only possible if riba is involved. I disagree on the analogy between a student loan and an Islamic mortgage. The Canadian Muslims mentioned in the article you linked, citing cultural sensitivity, seem to be disagreeing with you. May Allah Ta’ala grant you and us the correct understanding of Deen. Thanks That’s not an argument against their being offered, but it is a reason to dismiss the notion that not offering them actually represents any kind of barrier to access. And I so appreciate that – because it is hard, and it’s reassuring to know that someone’s out there dedicating time to do research on the relevant issues. is their any one who could structure student loans base on, murabaha, wakala, ijara maushufa biththima or bai muajjal… Some of these services may include basic personal loans, business loans, loan consolidation … In the event of remaining unemployed or employment with a salary below the set threshold, the “borrower” is not required to “repay”, even if he or she is in possession of adequate funds through alternative means. Salaams, Each year, five scholarships of $15,000 each are awarded an interest free loan (qard hasan) as a part of this scholarship. The bigger the profession, the higher the student loans i.e. Introducing shariah-compliant student loans is something that needs to happen. This is what happens when people decide to focus on issues more then thye are supposed to they mess up and give these kinds of fatwa Are you ready for our first ever NATIONAL CAMPAIGN? And I’m one of those Canadian Muslims who do disagree with you. presently ,we as a Islamic financial institutes are searching and innovating for alternative structures,… please feel free to disturb me on FB (mahdi35@live.com) with ur kind solutions and ideas, Assalamualikum. The idea is my organizations helps you to get education, when you are done and start a job you pay to educate another Muslim in the field same university. Islamic Sharia law prohibits 'Riba' – the paying and receiving of interest for profit. Gharar, which is an unacceptable degree islamic student loans ambiguity in the Quran and hadees nowhere it says changes... 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