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The question

Is it permissible, Islamically, to increase the amount of the car when purchasing it in installments from an Islamic bank, in order to use the excess amount to fulfill essential personal needs?

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Source: FtawySummary from Ftawy's records · added here Sep 2, 20261 min readAlso available in العربية
The answer

If the buyer and seller conspire for the seller to sell his car to the bank at a price higher than its real value, and then the seller returns the excess amount to the buyer after the buyer purchases it from the bank, then this is prohibited usury (riba) because it is a stratagem to obtain a loan with an increment. Necessity does not justify engaging in usury. Repentance and seeking forgiveness are obligatory. Islamic banks must beware of such stratagems, which may lead scholars to reconsider the permissibility of dealing with them.

Summary from Ftawy's records · added here

Reviewed by El Fatwa's sharia committee.

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Where this answer came from
Source platform
Ftawy
Original fatwa ID
37820
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.
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Read the full answer on Ftawy