Is it permissible to buy a car from a bank in installments with an increase in price, such that the bank first buys it, and then the buyer pays the bank in installments?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
If the bank buys the car and owns it, then sells it to the client for a profit, with the price paid in installments, this is a -compliant sale and purchase transaction. The bank's retention of the car as a pledge until its price is paid off does not affect this. However, entering into the contract is prohibited if it includes a Sharia-forbidden element, such as a late payment penalty.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/187081
Where this answer came from
- Source platform
- Ftawy
- Original fatwa ID
- 187081
- Added here
- . This is when the answer was added to El Fatwa, not the fatwa's date.
- Text
- Summary from Ftawy's records, reviewed by El Fatwa's sharia committee.
- Read the full ruling
- Read the full answer on Ftawy