It seems strange that this fatwah even has to be posted, but due to the fitnah in the west, and specifically in the UK in regards to the official government run student loan schemes and whether they are permissible or not, I am glad somebody as reputable as Sheikh Muhammad Saalih al-Munajjid and Islam Q&A have been able to address this issue.
This is not to denigrate Sheikh Hatham al Haddad, his followers on Islam21C or anyone else who holds the opposite viewpoint. I said before others are being unfair and unjust towards him and overly harsh in their refutations of his errant opinions but when someone makes a mistake, it is important the truth of the matter is clarified.
I have a question regarding interest. Firstly I would like to make it known that all my family is Muslim and we currently reside in Western Europe. I currently am a first year University student , in my country there is something called the Maintenance loan , which is a loan that can be taken not for the sake of the tuition fees of the university but to support a student in general while studying. This loan is entirely based on interest and ican be very desirable as it has very low interest rates and must also not be paid back till one finds themselves in a stable job hence maybe 10+years. I myself glory be to Allah have no need to take this loan as I am financially stable and have grants from the university itself. However my father has told me that I should take the full amount of this loan as it has very low interest rates. I have told him I do not need this money however he wants it for his personal gain and business endeavours. I know the great risk of interest and that it is very harmful. My question is what should I do in this scenario, would sin fall onto me?
Praise be to Allah
It is not permissible for you to take this loan, no matter how low the interest rate, because Allah has forbidden contracts that involve riba, whether the riba is great or small, even if it is only one dirham, and He has warned the one who consumes it and the one who pays it of punishment, wrath and curses. So beware lest you be one of them.
“Those who eat Ribâ (usury) will not stand (on the Day of Resurrection) except like the standing of a person beaten by Shaitân (Satan) leading him to insanity. That is because they say: “Trading is only like Ribâ (usury),” whereas Allâh has permitted trading and forbidden Ribâ (usury). So whosoever receives an admonition from his Lord and stops eating Ribâ (usury) shall not be punished for the past; his case is for Allâh (to judge); but whoever returns [to Ribâ (usury)], such are the dwellers of the Fire – they will abide therein.
Allâh will destroy Ribâ (usury) and will give increase for Sadaqât (deeds of charity, alms, etc.) And Allâh likes not the disbelievers, sinners.
Truly those who believe, and do deeds of righteousness, and perform As-Salât (Iqâmat-as-Salât), and give Zakât, they will have their reward with their Lord. On them shall be no fear, nor shall they grieve.
O you who believe! Fear Allâh and give up what remains (due to you) from Ribâ (usury) (from now onward), if you are (really) believers.
And if you do not do it, then take a notice of war from Allâh and His Messenger but if you repent, you shall have your capital sums. Deal not unjustly (by asking more than your capital sums), and you shall not be dealt with unjustly (by receiving less than your capital sums).
And if the debtor is in a hard time (has no money), then grant him time till it is easy for him to repay, but if you remit it by way of charity, that is better for you if you did but know.
And fear the Day when you shall be brought back to Allâh. Then every person shall be paid what he earned, and they shall not be dealt with unjustly”
The Prophet of Allah (blessings and peace of Allah be upon him) cursed the one who consumes riba and the one who pays it. Narrated by al-Bukhaari (5962).
It is not permissible for you to obey your father in that, because the rights of Allah and obedience to Him take precedence over the rights of the father and obedience to him. The Prophet (blessings and peace of Allah be upon him) said: “There is no obedience if it involves disobedience towards Allah; obedience is only in that which is right and proper.” Narrated by Muslim (1840).
For more information, please see the answers to questions no. 181723 and 96613.
And Allah knows best.