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Question ID: 146159Country: United States of America
Title: Is it allowed to give scholarship to needy student by interest money?
Question: Is it allowed to give scholarship to needy students by collecting the amount from alumni of a university and submitting it to the bank. The principal amount will return interest annually, which we want to distribute among financially needy students. For e.g. if we collect 1 lakh INR and make a Fixed Deposit of 1 lakh in a bank we received 8 thousand annually (8% interest on 1 lakh), which we will give to a needy student. Is it allowed ? Please suggest.
Answer ID: 146159Posted on:
Aug 30, 2020
Bismillah hir-Rahman nir-Rahim !
(Fatwa: 130/233/B=3/1438)
Neither it is lawful to do so only for receiving interest amount and distributing it among the poor and needy students nor you are assigned to do it i.e. it is not lawful to do so for receiving eight thousand rupees on fixed deposit of one lakh.
Allah (Subhana Wa Ta'ala) knows Best
Darul Ifta,
Darul Uloom Deoband, India