UPST

Upstart Holdings, Inc.

HARAM

Score: 12/100

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Is UPST Halal?

AI-powered lending marketplace — core business facilitates interest-based consumer and auto loans.

What You Should Know

Upstart Holdings is a US fintech company operating an AI-powered lending marketplace that connects borrowers with bank and credit-union partners for personal loans, auto loans, and home-equity lines of credit. The Upstart model uses AI and machine learning to assess credit risk beyond traditional FICO scores and refers approved borrowers to bank partners who fund the loans. Upstart earns referral fees, platform fees, and in some periods retains loan risk on its own balance sheet. The fundamental business model is the origination and facilitation of interest-bearing consumer loans. Interest (riba) is categorically prohibited in Islamic law. There is no Sharia-compliant mechanism to restructure Upstart's business into a permissible model — the platform exists specifically to originate ribawi lending products. Upstart fails the qualitative screen at all major Sharia advisory boards regardless of financial ratios.

⚠️ Concerns

•Core business is the origination and facilitation of interest-bearing personal loans and auto loans — riba is categorically prohibited in Islamic law
•Upstart earns referral fees and platform fees from interest-bearing loan origination, making the revenue stream directly derived from prohibited transactions
•Some periods of on-balance-sheet loan retention expose Upstart's own capital to riba-based returns
•No Sharia-compliant restructuring is possible — the platform exists specifically to facilitate ribawi consumer lending