Is SOFI (SoFi Technologies, Inc.) Halal or Haram?

Based on our AAOIFI-standard shariah screening, SOFI is Not Halal (Haram) and is not considered permissible for Muslim investors. It failed 1 of 4 compliance screens. SoFi Technologies, Inc.'s core business activity was found to be non-compliant.

SoFi Technologies, Inc. is a major player in the digital finance space, offering an all-in-one app for borrowing, saving, spending, and investing. Its core business revolves around its Lending segment, which provides student loan refinancing, personal loans for debt consolidation, and home mortgages. Beyond lending, SoFi operates a Technology Platform through Galileo, which powers fintech services for other companies, and a Financial Services segment that includes checking accounts and credit cards. For Muslim investors, SoFi presents a clear case of a non-compliant investment due to the nature of its business activities. Although the company passes the quantitative financial screens—such as debt and liquidity levels—it fails the primary Business Activity screen according to AAOIFI standards. This is because the majority of SoFi's revenue generation is tied directly to interest-based lending (Riba), which is strictly prohibited in Islamic finance. From a financial perspective , SoFi maintains a relatively clean balance sheet with a Debt-to-Market Cap ratio of only 7.4%, well below the 33% threshold. However, investors must look beyond these ratios; even though their specific reporting method might show ' 0.00%' in certain interest income line items for screening purposes, the operational reality is that they are a lender. The company's business model is built on the spread between the interest they pay on deposits and the interest they charge on loans . Investors should avoid this stock unless the company fundamentally pivots away from interest-based lending, which is unlikely given its banking charter. While the technology side of the business (Galileo) is innovative, it cannot be separated from the overarching lending operations that define the company's profitability. Consequently, SoFi remains classified as Haram for Shariah-conscious portfolios. SoFi Technologies, Inc. operates in the Financial Services sector under the Financial - Credit Services industry and is headquartered in San Francisco, CA, US. The company is led by CEO Anthony J. Noto and employs approximately 5,000 people.

SOFI was screened using AAOIFI-based shariah compliance criteria. Four tests are applied: (1) Business Activity — the company's core business must not derive primary income from haram (prohibited) activities such as alcohol, gambling, tobacco, or interest-based finance. (2) Debt-to-Market-Cap — total debt must not exceed 33% of market capitalization. (3) Interest Income — interest income must not exceed 5% of total revenue. (4) Cash & Securities — cash and interest-bearing securities must not exceed 33% of market cap. SOFI passed 3 of these 4 screens.

SOFI was last screened on 2026-02-25. Shariah compliance status can change as companies report new financial data, acquire new businesses, or shift revenue streams. We recommend checking back periodically for the most up-to-date screening results.