120
Model 2
FIGURE 29: COBALT TAKAFUL MODEL
Source: Cobalt (2014)
Takaful Alternative Student Finance
The Takaful Alternative Student Finance (TASF) model is a unique product backed by
legislative intervention in the UK and ready to be rolled out to students in 2020. In 2012, the
UK government, through a survey, sought the views of major stakeholders in the UK and
beyond to provide Shari'ah-compliant student loans for Muslims. It is meant to promote
financial inclusion, particularly to avoid a subtle exclusion of those who are averse to interest-
bearing student loans due to their religious beliefs. After a series of exploration, the final
model which has gone through necessary Shari'ah filters is presented i
FIGURE 30: THE STRUCTURE OF T AKAFUL ALTERNATIVE STUDENT FINANCE
Source: Adopted from Alamad (2019)
It is pertinent to briefly analyse how this ground-breaking model will be utilised for Shari'ah -
8. Student applies for
funds through Student
Loans Company (SLC)
7. Takaful finance fund
6. Student payments
remain in the fund
and are used to
provide finance to
future students
5. Takaful finance fund
4. Revenue and
Customs (HMRC)
3. Student makes
payments via the tax
system back into the
fund when they are
above the repayment
threshold
2. Takaful finance fund
1. Fund provides
finance to the student
(during the period of
study)
Policyholder/
Cedant
Cobalt
Broker
Advice
Claims
Premiums
Placement