Sharia loans are to be offered by the Government for first time as a new White Paper attempts to increase diversity in British universities. Muslims are forbidden from taking out loans on which they would be charged interest, but under the new arrangements they would instead pay "charitable contributions" which would allow more youngsters to go to university.
Ministers are tackling the issue by creating a "Takaful" model, by which students would make payments to a communal pot that would then benefit future students wanting to go to university.
The White Paper said: "We will introduce an alternative finance system to support the participation of students who, for religious reasons, might feel unable to take on interest-bearing loans. [The Telegraph] Read more
