Question
Is a student's loan Mudhaarabah? Some Ulama in Europe and the U.K. have issued a fatwa saying that loans which students acquire from banks for paying for tuition fees are permissible. They say that such loans are Mudhaarabah. How can a bank loan with interest be a Mudhaarabah?
Answer
The 'fatwa' is hogwash and flotsam. A bank loan or a loan by any one is never Mudhaarabah. Mudhaarabah is a trading partnership in which profit is shared between the partners. We have published a booklet in refutation of the bunkum 'fatwa' of the modernists deviates. The booklet, An Obnoxious Fatwa is available on our website.
- Source
- themajlis.co.za
- Published in
- The Majlis Vol 23 No 09
- PDF page
- 5
Appears under IS A STUDENT'S LOAN MUDHAARABAH? (approximate).