Can I take a line of credit for educational purposes?

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Question

I am seeking a religious ruling on using a line of credit for education
I am a dentist living in Canada and I wish to start the Canadian dental equivalency process. In order to register for my first exam and the preparation course, I need a significant amount of money.
I previously worked as a dental assistant to save for this purpose, but unfortunately, I lost my job. The course is scheduled to start on September 6, and if I miss it, the next available date will be in February. The course is only offered twice a year.

Answer
Alhamdulillah, wassalatu wassalamu ‘ala rasoolillah, wa ‘ala alihi wa sahbihi ajma‘in.

The default ruling in Islam is that riba-based loans are prohibited, regardless of purpose, because Allah says: “Allah has permitted trade and forbidden riba” (al-Baqarah 2:275). The Prophet ﷺ cursed the one who consumes riba, the one who pays it, the one who records it, and the witnesses, saying: “They are all the same.” (Muslim).

The Principle of Necessity

Islamic law recognizes al-darurat tubih al-mahzurat — necessities permit what is otherwise prohibited — but this applies only when:

  1. No permissible alternatives exist.
  2. The harm of not proceeding is serious and unavoidable.
  3. The prohibited act is limited strictly to the extent of necessity.

As the fuqaha state: “Necessity or need does not exist if there are available alternatives or substitutes.” (لا توجد الضرورات أو الحاجات إذا وجدت البدائل والنظائر).

Application to Your Case

  • If you are able to wait until the next course session and use lawful means (work, savings, scholarships, family assistance, community help, Islamic financing options), then it is not permissible to use a line of credit.
  • If missing the September intake would not destroy your career path, but only delay it, then this is a hardship, not a necessity that justifies riba. In that case, waiting is better Islamically.
  • Only if all halal avenues are exhausted, and not enrolling would cause severe harm to your livelihood or ability to practice your profession at all, could the principle of necessity apply. Even then, the amount borrowed should be strictly limited to the need, and one must strive to exit the debt as quickly as possible.

And Allah knows best.

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