As salamu alaykum warahmatullahi wabarakatuh
A few years ago I went uni and took to go university I had to take a interest based loan, I was not practising then, but I had intentions of paying it back when I had a job etc, I now regret taking it and have repented and will never take a interest based loan out again,
The condition of the loan:
1. They would take a small amount of money from my salary each month if I earn around 27k a year
2. If I die the loan is written off
If I die with not paying off the loan will I be questioned , punished for not paying it off, even though the debt was wiped because I passed away
My question is would it be fine, or would It be sinful, would I be questioned etc, if I never pay back the loan due to not earning 27k or more, even if I have money saved up. As I have some money saved up not a lot but as now I have finished university and got a job, I want to use the money I saved for giving charity, save for marriage, buy a car etc,
Can I use and spend my money as normal with the thought that I have no debt as I don’t think I would get a job earning that much? And spend as normal
Or would I still have to pay back the loan even though I don’t earn over the threshold they have given?
Wa ʿAlaykumus Salām Wa Raḥmatullāhi Wa Barakātuh
From a Shar’ī perspective, you are not obliged to pay back an interest-based loan; hence you will not be sinful if you do not do so.
However, if further financial harm would arise as a result of not doing so, then you may settle the loan and repent to Allāh.
Lastly, there would be no problem in spending from the wealth that you have earned in permissible and beneficial avenues.