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Student Grant that turns into a loan if conditions are not met

View Fatawa › Category: Other › Student Grant that turns into a loan if conditions are not met
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Avatarshermarke99 asked 3 years ago
Is it permissible to agree to take a Grant from the government with the condition that it may turn into a Loan in the future if he does not meet the terms and conditions of the Grant?

If the Grant was to turn into a Loan, the loan would contain a Riba-based condition (meaning if he doesn’t pay back the loan before the agreed time, interest accrues).