Is it permissible for a student residing in France to obtain a student loan, being compelled to pay a small amount in exchange for guaranteed exemption from the loan in the event of death, knowing that he has already signed the contract but has not yet received the money, and that he has a monthly salary and is able to ask his father for money?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
A Muslim must seek out what is lawful, and we thank the questioner for verifying these transactions. If the lending institution stipulates an amount for insurance, then if it is cooperative insurance, it is permissible and there is no objection to it, as it falls under the category of securing a debt. However, if it is commercial insurance, it is not permissible to participate in it, nor to proceed with a loan conditioned upon it, except in cases of necessity, and there is no necessity in what was mentioned.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/121374
Where this answer came from
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- Ftawy
- Original fatwa ID
- 121374
- Added here
- . This is when the answer was added to El Fatwa, not the fatwa's date.
- Text
- Summary from Ftawy's records, reviewed by El Fatwa's sharia committee.
- Read the full ruling
- Read the full answer on Ftawy