Is it permissible to purchase a phone in installments for 4400 EGP over one year through a lending institution that does not own the phone, knowing that the price of the device for immediate payment is 4400 EGP, and that this institution adds interest to the original price, making it 4800 EGP, but an agreement was made with the phone vendor to reduce the phone's price so that its value after interest becomes 4400 EGP? And is it permissible for the institution to deliver the phone directly to the buyer without him going to the company, or for a representative of the institution to pick up the device and give it to the buyer after signing the contract?

If the lending institution genuinely owns the device and then sells it, this transaction is permissible under the principle of Murabaha (cost-plus sale) for a party ordering a purchase, provided that the Sharia-compliant conditions are met, and that the device has entered into the institution's possession and ownership before being sold. If the institution pays the price on behalf of the phone applicant and then recovers it with an increase, this is an interest-based loan and is impermissible. It is not permissible for the institution to sell the device before taking possession of it, even if it has purchased and owned it. Any prior contractual link between the customer ordering the purchase and the original seller must be cancelled. It is preferable for the lending institution to purchase the item itself, or through an agent other than the customer. The institution may appoint a representative to take possession of the device and sell it to the customer after signing the contract.