Taking an Interest-Based Loan from a Bank to Cover Educational Expenses

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Taking an Interest-Based Loan from a Bank to Cover Educational Expenses

Financial Transactions,Loan,Taking an Interest-Based Loan from a Bank to Cover Educational Expenses

Fatwa No :

82769

| Date :

0000-00-00

Fatwa No : 82769
Taking an Interest-Based Loan from a Bank to Cover Educational Expenses

معاملات / مالی معاوضات / قرض

Taking an Interest-Based Loan from a Bank to Cover Educational Expenses

I am a student pursuing higher education in the field of public health administration. I am a full-time student at Georgetown University, located in Washington, USA. I am currently facing financial difficulties related to my education, and I am not permitted to work (hold a job) here. As a result, I am compelled to take out loans from a bank to cover my educational and other essential expenses. I want to know whether, in our Shari‘ah, taking a loan under such circumstances—or under any circumstances—is permissible or not? A person I know, who is a religious scholar with deep knowledge of Islamic rulings, told me that taking a loan for the purpose of education is not allowed in Islam. Kindly give a detailed response based on Islamic law (Shari‘ah).

الجوابُ حامِدا ًو مُصلیِّا ً

In the mentioned case, if the questioner has no possible means of financial support from their family to cover educational expenses, and taking a loan from the bank involves paying interest, then in such a situation, it is not permissible in Shari‘ah to take an interest-based loan from the bank or to continue education through such means. Instead, the individual should try to borrow the required amount as a Qard Hasanah (interest-free loan) from a relative, friend, or acquaintance. After completing the education, they can arrange to repay the borrowed amount later.

And Allah knows best
مفتی عبد اللہ شوکت صاحب عُفی عنه
دار الافتاء جامعه بنوریه عالمیه
Fatwa No 82769 Verify Now

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Taking an Interest-Based Loan from a Bank to Cover Educational Expenses        
    
    Question:
    I am a student pursuing higher education in the field of public health administration. I am a full-time student at Georgetown University, located in Washington, USA. I am currently facing financial difficulties related to my education, and I am not permitted to work (hold a job) here. As a result, I am compelled to take out loans from a bank to cover my educational and other essential expenses. I want to know whether, in our Shari‘ah, taking a loan under such circumstances—or under any circumstances—is permissible or not? A person I know, who is a religious scholar with deep knowledge of Islamic rulings, told me that taking a loan for the purpose of education is not allowed in Islam. Kindly give a detailed response based on Islamic law (Shari‘ah).
    Answer:
    In the mentioned case, if the questioner has no possible means of financial support from their family to cover educational expenses, and taking a loan from the bank involves paying interest, then in such a situation, it is not permissible in Shari‘ah to take an interest-based loan from the bank or to continue education through such means. Instead, the individual should try to borrow the required amount as a Qard Hasanah (interest-free loan) from a relative, friend, or acquaintance. After completing the education, they can arrange to repay the borrowed amount later.