Is Student Loan Haram In Islam (Yes/No)

Many students can’t afford the rising education cost or want to get abroad for studies. In such cases, taking a student loan is the only option for them to pursue their education.

However, in Islam taking a loan on interest is haram. So, this raises an important question, “are student loans haram?”.

In this article, we will answer the query is student loan haram in Islam with proof and also a guide to continue your study without breaking Islamic laws.

Is Student Loan Haram

Is Student Loan Haram In Islam?

According to Islamic ruling, a student loan is haram if it includes interest. Interest, also called Riba, is forbidden in Islam, and taking a loan on interest is a major sin according to Islamic laws.

Almost all conventional student loans involve interest, so they are not permissible in Islam.

They make an agreement about taking a loan with an amount of interest to be paid in the future, which is haram, according to Islam.

Some company also offers a loan on the condition that if the student earns more than X amount, then only they have to pay back the loan on interest. This kind of agreement is also haram as it comes under gambling and uncertainty.

Even if the student earns less than X amount, they don’t have to pay interest, but they are ready to pay interest with the agreement. This agreement is also against Islamic laws and makes the loan haram when signing.

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Why Student Loan Is Haram?

You might think, why is student loan haram if it helps me in my education?

The answer to this is that taking a loan with interest involves uncertainty and gambling. As per Islamic laws, gambling and uncertainty are haram, and taking loans on interest falls under this category.

In Quran, Allah says: “O believers, take not doubled and redoubled interest, and fear God so that you may prosper” (Surah Al ‘Imran, verses 13-132)

With this verse, Allah orders believers not to take the loan with interest, and it’s a major sin if you do this.

So even if you take a loan on interest and it helps you in education, you’ll be considered a sinner in Allah’s eyes.

So, instead of taking a loan on interest, you should look for alternatives and pray to Allah for help.

You can also read is it haram to buy a car on finance.

What Is The Alternative To Student Loans In Islam?

If you don’t want to break Islamic law but also want to continue your studies, then alternative options are available for you.

Get a Halal Loan: You can take a halal loan from Islamic banks; they will provide you with a loan without interest. Also, you can ask your family or friends for a loan without taking an interest.

People also consider it takaful, which helps get a loan without interest.

This is the best option for you as you don’t need to break any Islamic law and can continue your studies.

Scholarships and Grants: You can apply for different scholarships and grants available, and you get some money for your studies.

Many scholarships are available for students, and you can apply for them. This is a great way to continue your studies without any haram activity.

Work Part-Time: If you can’t take a loan or find any scholarship, then you should consider working part-time. You can take a part-time job or freelance work to earn some money for your studies.

There are many part-time jobs available in both online and offline fields. So you can find one according to your passion.

This way, you can continue your studies without breaking Islamic laws.

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Interest Rates On Student Loans And Sharia Law

Interest rates on student loans are usually high, which goes against Islamic principles.

According to Sharia law, Muslims should not engage in riba (interest) transactions.

This means that student loan with interest is forbidden as it does not meet the Sharia condition of mutual benefit without charging the lender or borrower additional fees or interests.

Additionally, taking a conventional student loan, which would involve paying interest on the borrowed amount, is also not permissible in Islam.

In conclusion, it can be said that any student loan that involves any form of interest or fee is strictly forbidden in Islamic law and should therefore be avoided.


Q. Is student finance haram?

A. Yes, student finance is haram if it includes interest, as taking a loan on interest is not permissible in Islam.

Q. Is it haram to take a student loan?

A. Yes, taking a student loan is haram if it includes interest, as taking a loan on interest is not permissible in Islam.

Q. Is student loan haram Hanafi?

A. According to Hanafi, a student loan is haram, as taking a loan on interest is not permissible in Islam.

Q. How to get a halal student loan?

A. You can get a halal student loan from Islamic banks that provide interest-free loans. You can also ask for a loan from your family or friends without accepting interest.

Q. Is student loan haram UK?

A. If the loan is taken on interest, then it is haram in the UK. Interest is not permissible in Islam, and so student loans with interest will be considered haram no matter what.

Q. Is taking student loan haram?

A. Taking student loan with interest is not permissible in Islamic law as it goes against the principle of mutual benefit and riba (interest). Muslims should therefore avoid taking student loans with interest.


A student loan is haram, as taking or giving interest is not permissible in Islam. So to continue your studies, you should look for alternative options available like halal loans, scholarships and grants, and working part-time. All these alternatives are halal and accepted by Islamic law.

You should pray to Allah for help in your studies and don’t take any step that is against His orders. Allah will help you and be on your side if you are following the Islamic laws.

I hope your query is student loan haram is now cleared. May Allah give you the best of life and help you in your studies. Ameen!

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