Fellow Muslims, getting a loan without interest from an Islamic Bank in the UK?

Since usury is forbidden in Islam, Is it possible, for students who want to attend university, to get a loan from an Islamic bank without interest? Are there any Islamic banks in the UK?

Thanks.

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Reply 1

Rds_

Islamic bank of britain ?

Reply 2

Origami Bullets

Given that wikipedia tells us that

Usury is the practice of charging excessive, unreasonably high, and often illegal interest rates on loans.

To me, this means that loans from loan sharks / payday loans are forbidden, but not all interest bearing loans are.

Would this not mean that student loans are permitted? They are very low interest loans, so surely they don't fit into the category of usury?
http://en.wikipedia.org/wiki/Student_loans_in_the_United_Kingdom#Interest_rates

Hoping someone can explain this to me - I'm just curious!

Reply 3

Saalisa4

Original post by Origami Bullets

Given that wikipedia tells us that

To me, this means that loans from loan sharks / payday loans are forbidden, but not all interest bearing loans are.

Would this not mean that student loans are permitted? They are very low interest loans, so surely they don't fit into the category of usury?
http://en.wikipedia.org/wiki/Student_loans_in_the_United_Kingdom#Interest_rates

Hoping someone can explain this to me - I'm just curious!

I think its better to look at the islamic definition of what interest is because it's not just unreasonably high rates, even adding a penny extra to how much the person owes is considered interest in islam. Hope that helps

Reply 4

James82

Original post by Saalisa4

I'm pretty sure that's considered interest anywhere.

Reply 5

Natalie21

How do Muslims get mortgages?

(edited 11 years ago)

Reply 6

James82

Original post by Natalie21

How do Muslims get morgages?

The house is basically jointly owned by the bank and the customer, the customer pays the bank an excessive rent so the bank can make a profit. Funny how excessive rent is perfectly fine, but not interest.

Reply 7

Natalie21

That is ridiculous :P

Reply 8

Natalie21

Original post by James82

That is ridiculous! :P

Reply 9

James82

Original post by Natalie21

That is ridiculous! :P

That pretty much sums up sharia law.

Reply 10

marcusfox

Original post by James82

Yes, well, what seems strange to me is how they (religionists of all denominations) can use what the legal profession would call 'loopholes' to get around the spirit of the rules as intended by the writers of their respective holy books and still feel morally superior to the rest of us.

Reply 11

bkeevin

Original post by James82

That pretty much sums up sharia law.

Indeed. Christians were equally not allowed to lend with interest in middle age Europe. That is what gave the jewish people the opportunity to be the only bankers since their religion allowed them to lend to non jews with interest. It has been a blessing and a curse at the same time to the jewish people.

Reply 12

blacklistmember

So can you actually get a loan without interest?

Reply 13

mimx

Original post by blacklistmember

So can you actually get a loan without interest?

Technically but there are complex schemes whereby you still end up paying the bank the same amount anyway.

Reply 14

lukas1051

Huh, you can do this?

Uhh yeah, I'm a Muslam too, interest free loan plz.

Reply 15

marcusfox

Original post by lukas1051

Huh, you can do this?

Uhh yeah, I'm a Muslam too, interest free loan plz.

I'm guessing that its the same 'devout' 0 rating loser who's applied all the negs in this thread and simply ran out of his daily allowance before he got to you. :smile:

Reply 16

Origami Bullets

Original post by Saalisa4

I'm sure there are different interpretations by different Islamic scholars.

Reply 17

selsheikh

Getting a loan with loads of interest is not really allowed in Islam as it's believed as unfair. However, as it is (as far as I know) entirely impossible to get an interest-free loan in the UK or other western countries, and it is believed to put people at a disadvantage if they cannot afford their own home etc, scholars have given fatwa's to say that it is permitted so long as you are not taking loans "irresponsibly". As in, taking a mortgage on a house or for university is "good", whilst taking out a £40,00 loan to buy a sexy car isn't really "right".

Obviously it's a bit difficult to decide what's allowed and what is not, but really you have to make that decision yourself and trust that your intentions are right :smile:

Reply 18

zedeneye1

Original post by James82

islamic finance is a joke....

its not islamic, its just the same thing with new names to target more customers....

A muslim who has studied islam properly would never take such stupid loans....i know i wouldnt....also, majority of the muslim scholars would not approve of these practices...but if they actually do approve of these practices, the end is near.

Reply 19

marcusfox

Original post by selsheikh

As in, taking a mortgage on a house or for university is "good", whilst taking out a £40,00 loan to buy a sexy car isn't really "right".

Again, that's your personal view, which doesn't fit with the Islamic view. Indeed, I've often heard say that the Koran is perfect and needs no modifications. I believe this is thus written in that book somewhere.

What you mean is that people are fine to follow the 'perfect' rules of the Koran when it suits you, but when it doesn't, when you want a student loan or a house, they aren't 'perfect' and thus you can pick and choose?

I don't think so.

Unless you can find a passage that says 'loans for sexy cars are forbidden, but those for student loans and houses are permitted'? I'm not much of a scholar, perhaps I missed it?

Original post by selsheikh

Obviously it's a bit difficult to decide what's allowed and what is not, but really you have to make that decision yourself and trust that your intentions are right :smile:

I don't have to believe in any sort of deity to have good intentions.

What seems bizarre to me is that those of a religion will go to heaven simply by believing, and those who don't won't, regardless of whether they have good intentions.

Also bizarre is having to check every tiny aspect of your life to see if such an act is permitted or not permitted according to some ancient rulebook.

After all, a truly forgiving god would know that you're a good person deep down, even if you choke the chicken at least once per day.