Fatwa ID: 06797
Answered by: Alimah Jannatun Nessa
Question:
https://www.gov.uk/government/publications/alternative-student-finance/alternative-student-finance
I wanted to ask about this sort of finance and whether it would be permissible.
There are courses that are available wherein through this finance the company is directly paid and you don’t get to touch the money. Only if you earn over 25k later in life do you have to pay £5/£7. When speaking to the company they said this link is the alternative funding that Muslims and those who do not want interest can receive.
What is the stance of the Ulama on this?
In the name of Allah, the Most Gracious, the Most Merciful
Answer:
The alternative student financing provided by the government is based on takaful, which works by pooling contributions from participants to create a fund that can be used to support student’s educational expenses.
The conditions for Takaful are as follows:
- Offer and acceptance
- Takaful must be done by a person who is sane and mature.
- The one whom takaful is being done for (the student) must be capable of paying back the amount of money he received.
- Both parties must be aware of the takaful.
The alternative student finance that the government has offered is permissible so long as the student is not required to pay back more than what was lent. There must also be transparency regarding the agreement from both sides as if there is any sort of, the takaful will not be valid.
Only Allah (عز و جل) knows best.
Written by Alimah Jannatun Nessa
Checked and approved by Mufti Mohammed Tosir Miah
Darul Ifta Birmingham
[Radd ul Muhtar, volume 7, page 552, Daar al Kutub al Ilmmiyyah]
شرعا: ضم ذمة الكفيل الى ذمة الاصيل في المطالبة مطلقا.
[Radd ul Muhtar, volume 7, page 555, Daar al kutub al ilmiyyah]
وركنها: إيجاب وقبول وشرطها كون المكفول به نفسا او مالا مقدور التسليم من الكفيل فلم تصح بحد وقود وفي الدين كونه صحيحا قائما لا ساقطا بموته مفلسا ولا ضعيفا
[Radd ul Muhtar, volume 7, page 556, Daar al kutub al ilmiyyah]
وحكمها لزوم المطالبة على الكفيل بما هو على الأصيل نفسا او مالا. واهلها من هو أهل للتبرع فلا تنفذ من صبي ولا مجنون الا اذا استدان له وليه.
[Fatawa Hindiyyah, volume 5, page 48-50, Maktabah Rahmaniya]
