Can I Get A Loan?
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I would like to go to college to become an engineer and get a Master's Degree, but I have a problem I don't have the money. Tuition for becoming an engineer is expensive. A student loan would help me; I would actually be able to become an engineer. Is there anything wrong with this according to the Quran? Am I allowed to get a loan to pay for my schooling?
Peace.
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Peace to all,
I think what wakas means by fiat money is money created out of nothing, or currency with no real hard value behind it, I also dont think that us taking out loans is unquranic even if it charges extreme interest rates, the sin is upon the one loaning it out at the usurious rates, not on us who are forced by circumstances to borrow in order to better ourselves.
Kurt
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Peace,
I agree, the person giving the loan has a greater burden and decision to make. Note in the below verse it is addressing the loaner.
2279 And if you will not do this, then take notice of a war from God and His messenger; but if you repent, then you will have back your principal money, you will not be wronged nor will you wrong.
2280 If the person is facing insolvency, then you shall wait until he becomes able. And if you relinquish it as a charity it is better for you if you knew. -
http//en.wikipedia.org/wiki/Fiat_currency
From my studies, The Quran does not allow interest on a loan that grows, that is clear to me. It is debateable whether it allows a fixed sum to be added on top of the loan amount that cannot grow. Of course, using fiat currency as a starting point messes up the whole thing as it is intrinsically wrong to begin with. Anyways, in a Quranic system, it would not be possible to legally pursue any addition to the loan, or perhaps even the loan amount and may have to be written off as charity. The topic of "riba" has been discussed many times.
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Peace to all,
I think what wakas means by fiat money is money created out of nothing, or currency with no real hard value behind it, I also dont think that us taking out loans is unquranic even if it charges extreme interest rates, the sin is upon the one loaning it out at the usurious rates, not on us who are forced by circumstances to borrow in order to better ourselves.
Kurt
Peace. I agree with you that those who commit usury are commiting a sin, and that those who have to pay the interest rates from it are not. I don't see why it would be a sin for them. May God bring me the answer.
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Peace Sarah
yes, why not? it's ribaa only when it's usury, i.e. very high rates of interest. If you get a loan at a reasonable rate of interest, what's wrong with it?
Peace Sarahthen let's agree to disagree on that.
Peace
SarahI agree that given our situation at present, one can get a loan. However, we should be striving for a Quranically permissible alternative.
Can you please cite your Quranic proof for ribaa only being "very high rates of interest"?
As for agreeing to disagree, it is not an option in this case due to the severity of non-compliance given in the Quran (2279).
Imraan
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Peace all,
These are just my thoughts..
I am beginning to think of why it is a sin for both the loaner and the borrower. Supply should equal demand in a free market. The price of commodities adjusts according to this. However if people borrow to buy things they cannot afford. It pushes the price up. Which I believe is why the housing prices have reached ridiculous heights.Basically, people who should not even be thinking of that 200K house are able to buy it, increasing the demand and making it 220k for future generations. Its a vicious cycle which will put the cost of such commodities out of reach for a lot of people (unless they borrow). I don't see why anyone would want this. Apart from the greedy bankers.
Borrowing with interest is what enables such massive loaning to occur. Without interest who would loan 200k+ ?
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Peace all,
These are just my thoughts..
I am beginning to think of why it is a sin for both the loaner and the borrower. Supply should equal demand in a free market. The price of commodities adjusts according to this. However if people borrow to buy things they cannot afford. It pushes the price up. Which I believe is why the housing prices have reached ridiculous heights.Basically, people who should not even be thinking of that 200K house are able to buy it, increasing the demand and making it 220k for future generations. Its a vicious cycle which will put the cost of such commodities out of reach for a lot of people (unless they borrow). I don't see why anyone would want this. Apart from the greedy bankers.
Borrowing with interest is what enables such massive loaning to occur. Without interest who would loan 200k+ ?
Peace. I don't agree that it's a sin for the borrower. I know what you mean when you talk about people who buy things that are way too expensive. I saw a program on TV the other day where a guy was talking about this huge and expensive house he bought. He couldn't make the payments, so he left it for another fancy house. Couldn't afford that one either, so he goes and gets a third house. It's unbeliavable how many people are doing these kinds of things. A civil engineer makes around $55, 000 to begin with, and the total cost for tuition and everything at a college I'm considering is around $100,000. If I finished college, then I would get an apartment, finish paying off the student loan as fast as I can, and then start making actual profit. I would probably always save up the money for something and then buy it. I don't feel that there is anything wrong with my plan and if somebody disagrees, then please comment.
