Requesting £0.00 Student Loan

Everyday Islamic Finance Personal and Family Finance
#1

Asalmualaykum

My university bursary is contingent on my taking out a tuition and maintenance loan. I am paying the tuition fee by myself next year inshaAllah and so do not want to receive a loan. I requested a £0 loan and £0 pound maintenance so I could still get the bursary.

There was some unrelated issue one time and I remember calling up the finance people in uni, the above point came up in conversation and the lady said that that’s not really allowed, and that the bursary was supposed to be additional support ontop of the loans provide.

Would my bypassing the system by requesting the £0 loans be considered in bad faith or an illegal loophole from the Shari’a perspective, bypassing some sort of agreed contract?

As a secondary question, is it even permissible for me to request a £0 loan? Am I seen to be agreeing into a haram contract regardless of what I request, similar to a credit card case?

Jazakallah Khayr

#2

Wa alaykum salaam,

In principle, if you are requesting £0, that means there is no contract from a Shariah perspective as there is nothing of value to exchange.

If this legal and allowed, then from a Shariah perspective, it will not be an issue Insha’Allah as long as you are not entering contracting to pay interest and no interest is charged either.

Allah knows best

#3

Jazakallah khayr. Thank you very much for the response!