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Is Student Loan Allowed Or Is It Riba/interest?
Is student loan allowed or is it Riba/interest?
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5 Replies
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Is Student Loan Allowed Or Is It Riba/interest?
updated 4 years, 1 month ago
5 Members
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5
Replies
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In my understanding, while riba and interest are used synonymously, they’re not the same. Also paying interest is not what is haram – it is earning interest that has been prohibited. As far as student loans, I think it’s a great service as long as the terms are not predatory (most are not).
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Faisal bhai,
What is the difference between riba and interest ? Are both haraam ?
How can a student pay interest without the lender muslim earning interest through lending this loan to the student ?
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Ghamidi Sahib talking about sod (سود) nowadays and I hope he will comment on the following?
1 – interest on personal loan
2 – student loans especially when it is not and a qarz e hasna and students don’t know how their future will evolve
3 – compound interest
4 – investment in companies in the form of stock or direct capital
5 – venture capitalists
6 – stock investing in general
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Assalamualikum Mumtaz Sahab!
Points 1,2 and 3 raised by you have already been covered in the talk actually (they haven’t been discussed separately but the essence of their ruling is the same as that of riba), kindly refer to these videos once again:
For further in-depth understanding on Riba, please refer to following lectures:
Discussion 31673 • Reply 31674
Regarding Investment in general, in the form of stock capital or direct Investment, following points need to be kept in mind:
– the investment should not be in a company engaged in immoral/unethical/Haram activities.
– The general principle of لَا تَأْكُلُوا أَمْوَالَكُمْ بَيْنَكُمْ بِالْبَاطِلِ (devour one another’s wealth by wrongful means) should be looked for in all financial transactions.
For further details you can refer to the following lectures:
Discussion 31654 • Reply 31655
You might also find the following discussion on stock Investment/Trading insightful:
(In case you still have any question regarding any specific application of riba or financial transaction (s), please feel free to post them in a separate topic)
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