Paying back student loan

Fatwa ID: 02120

Answered by Mufti Mohammed Tosir Miah

Question:

Salaam,
I have a question and would appreciate it if someone can answer. I had applied for student loan while I was at university, this is then paid back when you start working and until then small amount of interest is applied. I have recently started doing sheriparda and want to leave my current job due to difficulties of this. My question is if I leave I wont be in position to pay the loan back as soon as possible which means small amount of interest will be applied. My intentions are that I will pay towards this as much as I can- but will I get sinned for the interest that is being applied on this?
jzk

Answer:

Bismillah

Allah states in the Quran, “Allah has permitted transactions and has forbidden riba(interest)” (Surah Al Baqarah v.275)

Narrated Abdullah ibnMas'ud:The Messenger of Allah () cursed the one who accepted usury, the one who paid it, the witness to it, and the one who recorded it.(SunanAbiDawood: 3333)

It is evident from the above mentioned verse and hadith that involvement in riba(interest) is haram and must be avoided at all cost.

In regards to your question, as the loan is legally binding upon you and cannot be dismissed,every effort should be made to pay the loan back as soon as possible to avoid the addition of more interest whilst making sincere repentance to Allah alongside it.

Allah has stated: Say, "O My servants who have transgressed against themselves [by sinning], do not despair of the mercy of Allah . Indeed, Allah forgives all sins. Indeed, it is He who is the Forgiving, the Merciful." (Surah Zumar Verse 53)

“The Messenger of Allah () said: ‘The one who repents from sin is like one who did not sin.’” (SunanIbn Majah:4391)

Anas (may Allah be pleased with Him) narrates that the Prophet (peace be upon Him) has stated ‘Every son of Adam commits sin, and the best of those who commit sin are those who repent.’ (SunanIbn Majah:4392)

The scholars have stated there are 3 conditions for tawbahto be accepted.

  1. The abandonment of the sin.
  2. Expressing remorse over having committed the sin.
  3. Making a firm intention of not repeating the sin again. 

(RiyadhusSaliheen, Page 24-25. Darus Salaam)

In Sha Allah by fulfilling these conditions one can attain Allah’s forgiveness and attain his pleasure.

If possible, you may seek an interest-free loan from family and friends to pay the first loan back in order to avoid more addition of interest, while the second loan could be paid back without the fear of interest being added to it. (As advised by Sheikul Hadith MaulanaAbdurRaheemLimbadaSaheb on his website http://www.tafseer-raheemi.com/)

Only Allah Knows Best

Written by Molana Eunus Ali

Checked and approved by Mufti Mohammed Tosir Miah

Darul Ifta Birmingham

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