Muslim students to be given ‘charitable’ sharia loans

eid shopping
Muslim students to be given ‘charitable’ sharia loans

Sharia Loans for the First time in British Universities

Sharia loans are to be offered by the Government for first time as a new White Paper attempts to increase diversity in British universities.

Muslims are forbidden from taking out loans on which they would be charged interest, but under the new arrangements they would instead pay “charitable contributions” which would allow more youngsters to go to university.

To ensure participation and choice are open to all, we plan to legislate for the creation of an alternative model of student financeWhite paper

Ministers are tackling the issue by creating a “Takaful” model, by which students would make payments to a communal pot that would then benefit future students wanting to go to university.

The White Paper said: “We will introduce an alternative finance system to support the participation of students who, for religious reasons, might feel unable to take on interest-bearing loans.

“We have heard that some students will not access higher education in these circumstances, some will access higher education and use loans but will be troubled by their situation, and others will restrict their choice of course or institution to try to minimise the sums involved.

“To ensure participation and choice are open to all, we plan to legislate for the creation of an alternative model of student finance.”

Dr Samir Alamad a member of the Sharia Supervisory Committee and the expert who came up with the idea of the “Takaful” funds, said: “In the Islamic faith there is a strong prohibition against dealing with any sort of interest in any sort of financial transactions.”

Under the usual arrangements, students repay their loans to the Government when they start earning £21,000 and pay an interest of 3 per cent or more depending on their earnings.

However, under the alternative finance arrangements, Muslim students, or those from other faiths, would pay an “agency fee” of 3 per cent or more depending on earnings and the money they pay into the fund constitutes a “charitable contribution”.

Responding to concerns by some that this might just be a change in names, Dr Alamad said: “This is different. People pay back to the fund so future students can benefit from it rather than paying back to the Treasury. It’s about giving back to the community.”

Universities to be forced to lower their fees

Separately, universities might be forced to lower their fees to existing students if their teaching was not up to scratch for a year, according to proposals in the White Paper.

It said: “Where a provider’s Teaching Excellence Framework (TEF) level drops for the academic year to which the new level applies, they will have to lower the fees they are charging existing students.”

The new system will be “historyblind” meaning universities won’t be able to “bank” on positive performance from previous years.

However, experts warned this risked “commoditising” the sector with fees going up and down.

News Reported from Telegraph.


 

Love this Article ? ❤❤ Download it as pdf.

Print Friendly and PDF islam hashtag

Harvard appoints first Muslim Chaplain.

Khalil Abdur-Rashid appointed as first Muslim Chaplain in harvard Khalil Abdur-Rashid, an adjunct professor of Islamic studies at Southern Methodist University and co-founder of the Islamic Seminary of America, has been appointed Harvard’s Muslim chaplain, the University announced today. He will begin his role on July 5. “Khalil brings a remarkable combination of skills to the Harvard community. He has a deep knowledge of Islamic sciences, combines academic strength with experience as an imam and as a social worker, and is strongly grounded in the culture of the United States and of the U.S. Muslim community,” said Ousmane Kane, professor of Islamic studies, who chaired the search. “Beyond his skills and experience, he is a warm and welcoming person who exudes a sense of caring and of optimism. Khalil will provide much-needed support to Muslim students across the University and, like other chaplains, he will work not just with his ...
Continue reading
Personal Dua list

A Personal Dua Diary – 100 things to Ask Allah.

100 Personal Dua Assalamu Alaikum . I am Aafia . In My Previous Post I talked about my amazement when I learned that Majority of us do not know how to make Dua . I shared with you my notes of " the  Art of Invoking Allah via his beautiful names  . "And Many of you found it useful, Alhumdulillah ! Today I have One more Surprise for You . Do you know that "Allah is angry with People who do not make Dua "?(Quran:Ghafir-40:60). And just reading out Arabic Dua without knowing its meaning is not enough . When you do not know what are you asking to Allah how will you have the yaqeen that Allah fulfills all Dua? Dua cannot be done in a distracted manner, as the Prophet has said in a Hadith narrated by Abu Huraira: Make Dua and be assured of being answered, and know that Allah ...
Continue reading

Qiyamul lail Prayer from Mecca -(Last 10 Days of Ramadan )

Qiyamul lail Prayer from Mecca 2017 of the last 10 days of Ramadan Qiyam' means 'standing' and 'Qiyam al-Layl' means 'standing in night.' In the Islamic terminology, both terms refer to 'the voluntary night prayer, whose time extends from after 'Ishaa’ (evening) prayer until dawn.' Qiyam al-Layl is also known as Tahajjud prayer seeking Laylatul Qadr. Prophet SAW has said: “You should pray Qiyaam al-Layl, for it is the habit of the righteous people who came before you, and it will bring you closer to your Lord, expiate for bad deeds, prevent sin, and expel disease from the body.”[At-Tirmithi and Ahmad] In Sha Allah in this Qiyamul Lail Series ,you will able to witness the Qiyamul Lail Prayer of Ramadan 2017 from Mecca (Masjid Al Haram ) Tahajjud / Qiyamul Lail Prayer from Masjid Al-Haram Makkah – From Ramadan 21, 1438 (June 15, 2017) w/ English Subtitle Please Expand the Menu ...
Continue reading
islam hashtag
About Aafia 279 Articles
Assalamu Alaikum. I am Aafia an ilm Seeker who seeks to Spread the beauty of Islam .Prophet Muhammad(SAW) has advised :"Acquire knowledge and impart it to the people" - (Al-Tirmidhi, Hadith 107 ). If You found this Post Useful,remember me and my Parents in Your Prayers.And do feel free to leave a feedback . JazakAllahu Khair

Be the first to comment

Leave a Reply

Your email address will not be published.


*