An interest-free alternative to traditional student loans which aims to enable Muslim students to fund their university education without compromising their faith has been launched in London.
QardHasan is a higher education lending platform that adheres to the principles of Islamic finance. Using the power of community capital, students are able to crowdfund their student loans for university at zero interest. As well as facilitating access to higher education, QardHasan connects students looking for internships, part or full-time work with opportunities before, during and after university.
With tuition fees and living costs on the rise and the average British student graduating with a debt of £44,000, one of the biggest questions British students face is how to afford the costs of university education.
For over 130,000 Muslim students in the UK, taking out traditional student loans comes into conflict with their religious beliefs that prohibit all forms of interest. Research conducted by the UK Government shows that many Muslim students have been deterred from accessing higher education as a direct result of requiring an interest-bearing loan.
At QardHasan, Muslim students can launch a 40-day crowdfunding campaign to borrow up to
£30,000 by appealing to family, friends, alumni and charitable trusts to invest in their education.
“We’re telling Muslim students: ‘You don’t have to choose between your faith and your aspirations”, said Tom Woolf, Founder & CEO of QardHasan. “You can come from any background and aim for any career. All you need to do is showcase your potential and hustle like crazy.”