Subject : Ruling on the Increase Conditioned in Education Loans
Fatwa Number : 3097
Date : 05-08-2015
Classified : Usury (interest) &Loans
Fatwa Type : Search Fatawaa

Question :

I need to take some courses to improve my income, but they are costly. Is it permissible that someone covers their cost against taking a percentage from my salary over a period of two years, for instance?

The Answer :

All perfect praise be to Allah, The Lord of The Worlds; and may His blessings and peace be upon our Prophet Mohammad and upon all his family and companions.

A loan is a contract of aid and relief, and Allah, the Almighty, has legislated it to facilitate for people, and He dedicated an abundant recompense for those who loan it. Allah, The Almighty, says(what means), " Who is he that will Loan to God a beautiful loan? for (God) will increase it manifold to his credit, and he will have (besides) a liberal Reward."{Al-Hadeed/11}.

Muslim scholars have unanimously agreed that the increase conditioned on the loan is from the forbidden Riba (usury), whether it was big or small. As a result, if paying for the cost of these courses and taking a percentage from the salary are conditioned with an increase on the value of the loan, then  it (increase) is from the forbidden Riba. Allah, the Almighty, says (what means), "O ye who believe! Observe your duty to Allah, and give up what remaineth (due to you) from usury, if ye are (in truth) believers. And if ye do not, then be warned of war (against you) from Allah and His messenger. And if ye repent, then ye have your principal (without interest). Wrong not, and ye shall not be wronged."{Al-Baqarah/278-279}.

However, if the amount taken from the salary is equivalent to the cost of the courses paid for by that person, then this loan is valid, and that person will receive an abundant reward from Allah, the Almighty, even if the deducted amount is a percentage, so long as it involves no increase, and this is considered a loan not education Murabaha, because the legal Murabaha must adhere to meticulous religious constraints, which aren`t available in the issue at hand. And Allah knows best.



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