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BFF Income Share Funding

Fatwaa ID: 1148

As-salāmu ʿalaykum wa-rahmatullaahi wa-barakaatuh Mufti Saab, I hope you’re well.

Do you know if it’s permissible to use a site like this to pay off student loan?

In the Name of Allaah, the Most Gracious, the Most Merciful.
As-salaamu ‘alaykum wa-rahmatullaahi wa-barakaatuh.

The above is nothing but a loan with interest. The above is not permissible. The website states, “We provide you with the money you need up front and in return, when you are working, you share a fixed percentage of your income you earn for fixed period of time.” Call it interest or call it “income sharing”, both are in reality interest. Deriving benefit over a loan extended is haraam. There are ways to work around it. However, based on the information on the website, they do not qualify as Shari’ah compliant.

And Allaah Ta’aala knows best.
Mufti Muajul I. Chowdhury
Darul Iftaa New York

وصل اللهم وسلم وبارك على سيدنا محمد وعلى ءاله وصحبه أجمعين


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