Interest Free Loan

Zeus28

Hello. How are you ? Is it possible to get an interest free loan in the UK ? If so where ? I am keen on borrowing £10,000 however due to religious reasons do not want to deal with interest. Can anyone help please ?

dgtazzman

To put it simply, you don't get something for nothing. You might find a limited amount of interest free credit for the purchase of goods, but in these cases the merchant are using their (usually inflated) profit margin on said goods to cover the cost of the borrowing...

The only other option would be a credit card with a 0% apr period, but you would need a squeaky clean credit history for that and you are very unlikely to get a 10k limit on a single card.

Zeus28

What about two different cards at £5000 each ?

BillJones

Zeus28 wrote: »

What about two different cards at £5000 each ?

Still no.

Think of it from the lender's point of view, why would they lend you £10,000, £5,000, or even £1, for no return? They may not even get their money back. As you'll see, there are many on here who for religious reasons take money and don't repay it.

Nebulous2

What do other people who follow your religion do?

Banks have been trying to design products to meet people's religious needs, but they are not really mainstream products and I don't know much about them.

As an example this is the first link that came up on a search for 'Islamic loans.' I know nothing about this company and am certainly not recommending them, but it shows it can be done.

CLAPTON

I believe it is possible to get an interest free loan in exchange for 20% of the notional 'profit'.

frasersmum123

You can get Sharia mortgages but I am unsure about Sharia loans. As a pp says, what do other people who hold the same beliefs as you do?

somethingcorporate

Speak to followers of your religion, it's a very specific request.

We live in a capitalist society so you're not going to get a mainstream loan without paying (interest) for it.

dealer_wins

Your parents might be willing to give you an interest free loan.

Otherwise just think of interest as a cost, rather than an interest charge. Im sure the man in the sky will understand.

Zeus28

Whats the link Nebulous 2 ? I am really keen on getting an interest free loan. If anyone can help that would be much appreciated. Thanks.

Pixie5740

I know that you can get mortgages compliant with sharia law and that one Islamic bank in the UK has found a way round the student loan system that is more in keeping with the principles of Sharia law but I don't know about any persona loans.

In the case of the student if a student needs £10,000 for tuition fees then the bank will buy some commodity for £10,000 and then add a markup of £2000. The student sells the commodityfor £10000 and then pays the bank back £12000 in installments when they graduate.

http://www.islamicloan.co.uk/