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: FtawySummarized from the full answer at Ftawy · imported 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).
Summarized from the full answer at Ftawy · imported
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- Original fatwa ID
- 189143
- Imported
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