Information on Sharia compliant funding

Some Muslim students may be unable to take out their student loan entitlement as these loans are charged interest which does not comply with Sharia Law. Islamic Sharia Law prohibits the paying and receiving of interest for profit – this is known as ‘Riba’. Student loans provided by the Student Loans Company are charged interest on a sliding scale based on the Retail Price Index +3% (variable depending on income). Although student loans are charged profitable interest and are to be paid back, any student grants issued by the Student Loans Company do not get charged interest nor have to be paid back, therefore, it is expected that the student would take this if eligible.

Students are advised to apply to Student Finance whether they wish to take out the loan or not as in some cases students may be eligible for grants and these are assessed in the same way as the student loan.

Some alternative sources of potential funding for undergraduate and postgraduate students wanting to comply with Sharia Law are:

  • University Bursaries and Scholarships
  • Part-time work
  • Funding from trusts and Charites
  • Sharia Law bank accounts
  • Interest-free loans from Islamic banks

University Bursaries and Scholarships

Swansea University offers a number of bursaries and scholarships. Some of which are:

The Excellence Scholarshipwhich is awarded to undergraduate students who achieve AAA at A Level or equivalent. The scholarship is worth £3,000 and split over three years providing progression targets are met.

The Merit Scholarship, which is awarded to undergraduate students who achieve AAB at A Level or equivalent. The scholarship is worth £2,000 and split over three years providing progression targets are met.

Departmental scholarships and bursaries are also available. It is advised to contact your department for information on any specific scholarships and bursaries available.

Postgraduate scholarships and bursaries are available from the university also. Information on scholarships and bursaries available to postgraduate students studying on either a taught or research programme can be found on the university website.

Part Time Work

The Swansea Employability Academy (SEA) have an Employability Zone which helps students find graduate recruiters, part-time work, internships and work placement opportunities. Students have to sign up to be able to access the Employability Zone but once signed up, have access to free SEA networking and training events, a copy of the annual Employment Zone magazine, introductions to other SEA offers and an invite to the annual SEA dinner. For more information, please visit the Employment Zone.

Funding from Trusts and Charities

Students can approach trusts and charities for financial assistance to help through their university studies. The two guides we refer students to are:

The Grants Register by Palgrave and Macmillan – this publication is in the university library. The book provides information on the availability and eligibility of awards from trusts and charities for postgraduate students.  

The Alternative Guide to Funding – this publication can be accessed online here: Postgraduate Funding. As Swansea University is a subscriber of the publication, our students can access it free of charge. Again, this publication outlines funding available to postgraduate students from trusts and charities.

Sharia Law Bank Accounts

Al Rayan Bank currently provides bank accounts that comply with Sharia Law. For more information on the services offered and how to apply, please visit their website.

Interest-free loans from Islamic banks

Al Rayan Bank currently provides additional financial services such as; home financing, savings and investment services. For more information on any of the services offered, please visit their website.

Student Loan Company

The Government has been looking into the possibility of making an alternative student finance product available to students who would not take out a standard student loan due to the Sharia Law. A Sharia advisory committee would oversee this product. At present, we are still awaiting further information on this alternative finance product but information will be supplied as and when the Government make any announcements.

Swansea University Opportunity Award (SUOA)

Swansea University has a Hardship Fund in place to help Home students who are studying a full or part-time structured course who are struggling financially. Where a student is unable to access their full student finance entitlement due to faith reasons, this may impact your eligibility to the fund.

If you would like to speak to a member of the Money@CampusLife team about the Swansea University Opportunity Award you can do so by emailing 

This information is a brief guide only, and students who would like clarification on the issues should be referred to the University Iman, Mohsen El-Beltagi by emailing or The Federation of Student Islamic Societies (FOSIS).