To what extent is it permissible for the bank to buy a car for me and then sell it to me by installments as part of the car loan program?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
The ruling on this transaction depends on understanding its true nature. If the bank owns the car and takes possession of it, then sells it to you in installments without stipulating a late payment penalty, then this transaction is permissible. However, it is common for usurious banks not to purchase cars; instead, they lend the customer its price, and then the customer repays them with an increment in installments. This is prohibited usury.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/177290
Where this answer came from
- Source platform
- Ftawy
- Original fatwa ID
- 177290
- 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