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ANSWERED: Career development loans

Last updated: 6th December 2004
Question ID: #223
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6th December 2004

Assalamu alaikum dear repect Ulema, I would like to know if career development loans are halal. I have given a link to a site explaining the loans. JazakAllah

Ulamaa ID 06
Answer last updated on:
6th December 2004
Answered by:
Ulamaa ID 06
Location: London
Wa Alaikum Salam,

The CDL mentioned in the above question and that described in the link is not permissible.

The DfES pays the interest on your loan while you?re learning and for up to one month afterwards. You then repay the loan to the bank over an agreed period at a fixed rate of interest.

Due to the return of this loan evolving around interest, it is Haraam.

And Allah knows best.