Question

To ask the Secretary of State for Business, Innovation and Skills, what advice he has received from Islamic scholars on the writing off of sharia compliant student loans.

Following a consultation in 2014 on a Sharia-compliant alternative finance product which sought to obtain views on the acceptability of an alternative finance product based upon the Takaful Model, officials in the Department for Business, Innovation and Skills are working with Islamic finance experts to consider the introduction of a possible alternative finance product, including terms and conditions that would be Sharia-compliant and equivalent to other student loans. Advice has been received from Al Rayan Bank (formally Islamic Bank of Britain).