It is permissible for Muslim students to receive government students’ loans from non-Muslim countries during their studies if it is ascertain that the amount will be repaid without any interest incurred.  

Student Loans

Similar Questions

• Students’ scholarships;

• Financial support for students by non-Muslim governments.

The Issue

Muslim students in non-Muslim countries may be entitled to government student loans to pay their fees and cover their living expenses.

Ruling

It is permissible for Muslim students to obtain loans offered by non-Muslim governments to their citizens during their university studies, providing such loans are free of any usurious increase related to the living cost indicator. This is stated in Decision 4-18 of the European Council for Fatwa and Research.

Evidence

In principle, student loans are permissible if it is ascertained that such loans do not incur any usurious increase.

The law that organizes the repayment of student loans considers the student’s situation, interests and ability to repay and a student will only be required to start repaying the loan when he or she is receiving a reasonable salary. Repayment is taken according to the level of earning and the conditions take into consideration the situation of the student who receives the loan, not the lending government.

Sources

• Decisions of the European Council for Fatwa and Research.

• Khalid Abd al-Qadir, Fiqh al-Aqaliyyat al-Muslimah.