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  • Is Student Loan Allowed Or Is It Riba/interest?

    Umer updated 3 years, 9 months ago 5 Members · 5 Replies
  • Faisal Haroon

    Moderator June 24, 2020 at 4:34 pm

    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).

    • Sameer Bhagwat

      Contributor July 28, 2020 at 12:54 pm

      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 ?

  • Umer

    Moderator June 24, 2020 at 11:23 pm
  • Mumtaz Siddiqui

    Member October 3, 2020 at 11:21 pm

    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

    • Umer

      Moderator October 6, 2020 at 3:33 pm

      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:

      Discussion 30863

      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:

      Discussion 2364

      (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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