What is the ruling on an Islamic bank purchasing a car from a usurious bank in installments, with a 13% increase on its original price, if the usurious bank had also added 13% to its price?
Purchasing a car through an interest-based bank is forbidden (haram), as it is an interest-bearing loan. The buyer must repent to Allah. It is not permissible to attempt to purchase the car again through an Islamic bank because it has already become the property of the buyer. Repentance is sufficient for him. If he is able to pay the principal amount without the interest, then he should do so.
Summarized from the full answer at Ftawy · reviewed Sep 2, 2026
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