In line with the prior dialogue, it is obvious that, financing that is supplied by higher education mortgage board are inconsistent which have Islamic laws because it is comes with the element of attention (riba) that is forbidden under sharia rules. Furthermore, style of riba is classified once the riba al-nasi'ah which means a particular years provided to financial for fees out-of financing in return for more percentage. People predetermined payment along side more than actual amount of dominant contribution is banned for the Islam (Muhammad Abu Zuhra ). Ergo, that isn't welcome to have Muslim youngsters to apply for large education loan; due to the fact live messenger of Allah cursed the person who allows the latest riba as well as the individual who pays it.
Brand new Islamic model contemplates the brand new contribution out-of about three trick representatives through the the procedure: College students, Degree Loan Panel and you will Waqf Institution which relies on immovable assets instance farming residential property, commercial building an such like., the income from the systems might possibly be familiar with fund 100 % free interest financing (Qard Hassan), to the people whom pursue degree. It entails an excellent Muslim student to try to get the loan away from an effective waqf facilities; immediately following the guy/she gets approval he/she have to go to the HELB office so you can sign legal records, the brand new scholar who receives the financing also needs to signal legal files during the waqf business. Repayment will be done immediately after graduation and once the guy/she's secure a position. Cost is prepared just as on mediocre inflation price and you may less than interest rates. In case a recipient fails to pay back the fresh new benevolent mortgage the latest waqf facilities (lender) need believe it just like the foundation. So it flow of cash can benefit hopeless youngsters to complete their degree. Hence, members assist one another to acquire higher education. In connection with this Allah said: "And you will work inside the righteousness and you will piety, but don't cooperate during the sin and you can violence" (al-Quran 5: 2). Nevertheless, incomes from wafnstitution shall be dedicated to the reduced-chance project as well as the earnings goes back to doing work costs to finance Muslim students. As such, the earnings extracted from the low-risk capital might possibly be useful to help college students whom go after subsequent education from inside the colleges and universities.
The study concluded that, the brand new organization from Islamic Waqf Student loan will help Muslims loans its advanced schooling without having to sacrifice its trust. They're going to no longer need to worry about trying to repay the fresh loan given that waqf team will remain as the guarantor. The whole process of installing a keen Islamic Waqf Student's Loan looks commonly become a relief towards the Muslim pupils throughout the Republic from Kenya.
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