Is UPST (Upstart Holdings, Inc.) Halal or Haram?

Based on our AAOIFI-standard shariah screening, UPST is Not Halal (Haram) and is not considered permissible for Muslim investors. It failed 3 of 4 compliance screens. Upstart Holdings, Inc.'s core business activity was found to be non-compliant. Its debt-to-market-cap ratio of 57.83% exceeds the ≤33% threshold. Its interest income of 18.99% exceeds the ≤5% limit.

Upstart Holdings operates a cloud-based artificial intelligence lending platform in the United States. By leveraging AI, the company aggregates consumer loan demand and connects borrowers with a network of traditional bank partners to originate personal and auto credit. For Muslim investors, Upstart is currently classified as Not Halal (Haram). The stock fails three out of the four AAOIFI screening criteria, primarily because its core business model is built around facilitating conventional, interest-bearing loans which violates Islamic prohibitions against riba. From an Islamic finance perspective, Upstart's financial structure presents significant compliance hurdles beyond just its business operations. The company carries a heavy debt load, with debt to market cap at 57.8%, and derives 18.99% of its revenue from interest income, both well above the 33% and 5% allowable thresholds respectively. Given the inherently riba-based nature of the consumer credit market, Upstart's business model is fundamentally incompatible with Islamic principles. Muslim investors should avoid this stock and look for technology companies outside the conventional lending space. Upstart Holdings, Inc. operates in the Financial Services sector under the Financial - Credit Services industry and is headquartered in San Mateo, CA, US. The company is led by CEO David J. Girouard and employs approximately 1,193 people.

UPST 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. UPST passed 1 of these 4 screens.

UPST was last screened on 2026-04-27. 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.