Fatwa ID: 07037

 

Answered by: Maulana Ousman Haye

 

Question:

Salaam Hazrat Maulana, hope you are well.

 

https://www.gov.uk/government/publications/alternative-student- finance/alternative-student-finance

 

I wanted to asked 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:

Islamic Takaful funds are based on contributions and cooperation amongst a group of people who agree on paying specific sums of money as a gift to the fund in return for agreed upon sums in case of afflictions befalling any of them, in this case a student loan.

 

The opinion expressed by the Fiqh Academy in Makkah Mukkaramah in 1398 A.H./1978 and the Fiqh Academy in Jeddah in ruling #9 in 1406 A.H./1985 was that a co-operative insurance is legally valid as a charitable contribution and co-operation contract.

 

In this contract, each participant pays his contribution voluntarily to reduce the effects of loss. In summary, this form of social and co-operative insurance is permissible since they are based on charitable contributions. (Financial Transactions in Islamic Jurisprudence p.44 v.2)

 

Therefore, takaful is the alternative for these haram loans and insurances.

 

Provided that this does not indulge with the ways of conventional loans, it will be permissible.

 

Furthermore, their website states that they are working with the Islamic Finance Council UK to ensure the alternative student finance system introduced is compliant with Sharia law.

 

Therefore, once the final details are put in place, the local scholars can give a better detailed answer.

 

 

Only Allah (عز و جل) knows best.

Written by Maulana Ousman Haye

Checked and approved by Mufti Mohammed Tosir Miah

Darul Ifta Birmingham

 

 

 

هي لغة: الضم وشرعا ضم ذمة الكفيل الى ذمة الأصيل في المطالبة مطلقا بنفس أو دين أو عين كمغصوب ونحوه كما
سيجيء لأن المطالبة تعم ذلك ومن عرفها بالضم في الدين إنما أراد تعريف نوع منها وهو الكفالة بالمال لأنه محل
الخلاف وبه يستغنى عما ذكره مملا خسرو
(رد المختار، ج٧، ص٥٥٣، عالم الكتب)