Is purchasing an air conditioner by scheduling payments to the bank—where a portion is paid each month (with a minimum of 5%) and an additional 1% of the item's price is paid at the end of the year, with the percentage decreasing if payment is completed before a year—considered permissible (halal) or is it usury (riba)?

It is not permissible to purchase a commodity where the bank pays the price to the seller and then collects it from the buyer with an increase in installments, as this is usury (riba). However, it is permissible for the bank to buy the commodity and for it to enter its possession, and then sell it to you in installments with a known increase, without stipulating a late payment penalty.