IslamicFinance.de

An UMNO-linked Muslim scholar and economist has characterized the study loans supplied by the National Higher Education Fund Corporation as un-Islamic.
Dr Asyraf Wajdi Dusuki, head of research at the International Shariah Research Academy for Islamic Finance (ISRA), states that the current practice of dictatting a 'service charge' on borrowers was not excused by Islam and was contrary to Islamic financial laws as agreed by Islamic scholars.
According to him, the service charge must show the actual cost and cannot be based on a percentage of the loan.