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Is the car that the company provides to the employee considered halal, knowing that the company pays its installments to the bank, and it becomes the property of the employee after 7 years, and the contract between the company and the bank might be usurious?

1 min readAlso available in العربية

If the employee has no connection to the car purchase contract, then there is no harm in him using it, whether the company acquired it through a permissible contract (like Murabaha) or a prohibited one (like an interest-based loan), because the ownership of the car is established for the company even if its source was an interest-based loan, and the sin falls upon the borrower.

It is permissible for the company to stipulate that the employee works for seven years to own the car; because a gift can be made conditional, and this is the view of some Hanafis and Hanbalis, and the choice of Shaykh al-Islam Ibn Taymiyyah and his student Ibn al-Qayyim, who based their argument on the hadith of Jabir (may Allah be pleased with him) with the Prophet (peace be upon him). If the employee completes the period, the car is his; otherwise, it is not.

Summarized from the full answer at Ftawy · reviewed Sep 2, 2026

Read the full answer on Ftawy