Is interest-based educational loan allowed in islam?


Dealing with riba (interest) is a major sin in Islam. There is no ifs and buts. Be it educational loan, house loan or even marriage loan. In Qur’an and Sunnah, you find stern warning against riba.There some muslim agencies which provides interest free educational loan to students.

Allah says in Qur’an:

Those who consume interest cannot stand [on the Day of Resurrection] except as one stands who is being beaten by Satan into insanity. That is because they say, “Trade is [just] like interest.” But Allah has permitted trade and has forbidden interest. So whoever has received an admonition from his Lord and desists may have what is past, and his affair rests with Allah . But whoever returns to [dealing in interest or usury] – those are the companions of the Fire; they will abide eternally therein. [Surat Al-Baqarah 2:275]
and he says:

O you who have believed, fear Allah and give up what remains [due to you] of interest, if you should be believers.And if you do not, then be informed of a war [against you] from Allah and His Messenger. But if you repent, you may have your principal – [thus] you do no wrong, nor are you wronged. [Surat Al-Baqarah 2:278-279]
The Prophet (peace and blessings of Allaah be upon him) said:

“A dirham which a man consumes as riba knowingly is worse before Allaah than thirty-six acts of zina.” Narrated by Ahmad and al-Tabaraani; classed as saheeh by al-Albaani in Saheeh al-Jaami’, no. 3375.
And he said:

“There are seventy-two types of riba, the least of which is like a man committing incest with his mother.” Narrated by al-Tabaraani in al-Awsat; classed as saheeh by al-Albaani in Saheeh al-Jaami’, no. 3537.
It was proven from the hadeeth of Jabir (may Allaah be pleased with him) that the Messenger of Allaah (peace and blessings of Allaah be upon him) cursed the one who consumes riba, the one who pays it, the one who writes it down and the two who witness it, and he said, “They are all the same.”

The scholars are unanimously agreed that every loan involving interest or any kind of benefit is haraam.



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