Sharia Compliant Loans

Information on alternative loans and finance for University
Information on alternative loans and finance for University

We are aware that students of certain faiths are unable to afford University due to the terms and conditions associated with Student Loans, specifically the interest payable. The Government has announced plans to launch an alternative financing scheme which will allow affected students to have alternative loans to fund their education while being compliant with their faith. However, the release date for the scheme hasn’t been announced yet and there are numerous national campaigns, through NUS and otherwise, to lobby the Government to announce the dates for the scheme. (see here for more information on the campaign http://www.halalstudentloans.co.uk/)

In Exeter, students not in receipt of loans can still receive the Access 2 Exeter bursary if they are eligible. To receive the bursary without taking out a student loan you need to apply to Student Finance and complete the Household Income assessment, but state that you do not wish to receive a maintenance loan or tuition fee loan. If you do this you will not get a loan, but your assessment details will be passed on to the University who will then pay the bursary if eligibility can be confirmed. The bursary is not repayable and does not accrue interest.

You can also apply to the University Hardship fund in the usual way if eligible. The Hardship Loan is not able to pay entire living costs or tuition fees in place of your loan. The fund is there to cover a gap in a students’ finances caused by an unexpected situation or struggling to make ends meet.

There are organisations which provide loans based on alternative repayment models. These include: 
https://www.alrayanbank.co.uk/home-finance/
http://www.lloydsbank.com/current-accounts/all-accounts/islamic-account.asp
https://www.qardhasan.com/
(we do not recommend or endorse any of these organisations and provide these links purely for information purposes)
If you would like further advice you can contact the Advice Unit by email (hyperlink email address) or 01392 723520


University of Exeter Students' Guild is a Charity and Company Limited by Guarantee. Registered Charity Number: 1136468 Company Number: 7217324; registered in England and Wales Registered office: Devonshire House, Stocker Road, Exeter, EX4 4PZ