Interest-free student funding options

Deciding whether to take out a loan

You may choose not to get a loan from the Student Loans Company for religious reasons.  

You would need to fund your studies in another way, such as using savings or payments from family. 

If you do not have a student finance loan, this could impact what other funding you can apply for. 

Loans that follow Sharia Law

Some UK funding providers offer loans that are interest-free and comply with Sharia Law. 

Interest-free overdrafts 

You could get a UK bank account that allows you to get an overdraft without paying interest. 

These accounts are usually offered to undergraduates who have a maintenance loan. They are interest free up to a limit, depending on your credit history. The bank may need evidence of your maintenance loan before you can open an account. 

Use online comparison tools to identify banks that offer the most generous interest-free overdraft facilities.   

Interest-free UK government loan

From the academic year 2026/27, the UK government will introduce a new alternative student finance. This will enable students to apply for an alternative payment for tuition fees and living costs, instead of an interest-bearing loan. This would be compatible with Islamic finance principles.  

Grants and bursaries that follow Sharia Law

You could get funding that does not require you to take out a loan, such as: 

• Disability Support (gov.uk) 
• Young Students’ Bursary (students from Scotland) 
• Lone Parents’ Grant (students from Scotland) 
• Discretionary Funds (students from Wales) 
• Healthcare, medicine, dentistry and social work bursaries (students from Wales) 
• Students who have a child or caring responsibilities. 

Impact on welfare benefits 

The benefits you receive while studying might be lower. This is because the benefit provider assumes you have Student Finance loan, even if you have not taken a loan. 

University bursaries and scholarships

Financial Assistance Fund 

Students facing financial hardship can apply for a financial assistance fund.  

University of Bristol Bursary 

We offer a means-tested bursary where you could get up to £2,500 every year of your course. 

To check if you can get this bursary, your student finance provider (such as Student Finance England) will assess your household income. You do not need to take out any student loans you are offered. 

Other bursaries and scholarships 

We need information about your household income to consider you for certain scholarships and bursaries. Without providing this, you may miss out on financial support. 

Trusts and charities

If you are a Muslim student, you may be eligible for some additional financial help from the National Zakat Foundation.  

Contact us

Get support from a Student Money Adviser.