FatwaPenangTransactions & Finance
MOHON PANDANGAN FATWA TENTANG HUKUM FAEDAH YANG DIKENAKAN KEPADA PINJAMAN PENUNTUT OLEH KERAJAAN NEGERI PULAU PINANG
What is the ruling on interest charged on student loans by the Penang State Government?
Short answer
The Penang State Fatwa Committee ruled that the interest charged on these student loans is haram because it involves riba.
A reference, not a fatwa. First sentence of the summary below — read the original fatwa and consult your state authority before acting.
- Authority
- Penang State Mufti Department
- Date
- Status
- Fatwa committee decision
- Series
- Keputusan Fatwa Negeri Pulau Pinang (e-Fatwa)
- Topic
- Transactions & Finance
No evidence of gazettement in the source — this is not a gazetted fatwa.
Summary
The Penang State Fatwa Committee ruled that the interest charged on these student loans is haram because it involves riba. It recommended that the relevant party draw up new terms and a new contract in line with Islamic law. Borrowers may first accept the loan offer and then renew the loan contract as an ujrah (rental), and the State Mufti Department is ready to advise on Sharia-compliant loan arrangements.
Written in our own words from the original fatwa — check the source before acting on it.
Hukum Faedah Yang Dikenakan Kepada Pinjaman Penuntut Oleh Kerajaan Negeri Pulau Pinang adalah haram kerana berunsur riba.
Read the full fatwa on the Penang website (new tab)
How to cite
Cite the original fatwa and its authority. Rujuk Fatwa is only where you found it.
Penang State Mufti Department. “MOHON PANDANGAN FATWA TENTANG HUKUM FAEDAH YANG DIKENAKAN KEPADA PINJAMAN PENUNTUT OLEH KERAJAAN NEGERI PULAU PINANG”, 16 October 2019. http://efatwa.penang.gov.my/fatwa_details.php?fatwaid=1354. Found via Rujuk Fatwa: https://rujukfatwa.com/en/fatwa/ruling-interest-student-loans-penang-government/