Is financing tuition fees by installment payment over 12 months without increase, with a one-time administrative fee of 15% being charged, permissible (halal) or does it fall under usury (riba)? And is the percentage that the app-owning company takes from financing entities (banks and financing companies) in exchange for marketing customers to these entities permissible?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
It is permissible to act as an intermediary between students' guardians and financing companies for a commission, provided that the loans are permissible. This means that the percentage taken (administrative fees) must be actual charges for the loan service and not a cover for usurious interest. Any increase beyond the actual services is forbidden and considered usury (riba).
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/189143
Where this answer came from
- Source platform
- Ftawy
- Original fatwa ID
- 189143
- 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