Is Interest Based Loan for Studies allowed in Islam
What is the ruling of various scholars and yours too, on getting loan on interest for studies / student loan? Or getting loan on interest for anything, for that matter? Is it haraam?
Javed Ghamidi Sahib sees no problems in borrowing on interest, because he thinks that the real crime is taking interest and not giving it. He believes that nowhere in the Quran or Hadith, we find the condemnation of giving Riba.
I can see his line of argument but still don’t find myself completely comfortable with it. However, if you have no other alternative, you can reluctantly go for it since it is not a direct crime. Moreover, if someone is prepared to give you funds on a higher return basis, find someone who is prepared to give you funds for education with an incentive to receive a higher amount, provided you are in a position to do so. The condition that you will pay more only if you have the financial ability to pay will make the deal Riba free.