Is it permissible, Islamically, to finance the purchase of a bus through an Islamic murabahah from a bank, where the bank finances part of the price and a specific murabahah rate is agreed upon, with the bank purchasing and owning the bus before selling it to us in installments, and the bank bearing responsibility for the bus during the transitional period, in addition to paying a guarantee fee to an external party, and mortgaging the bus to the bank without imposing late payment penalties?

The answer can be summarized as follows:

1 and 2 - If the bank is to purchase the remaining 70% of the bus and sell it on a Murabaha basis, there is no harm in that. However, if you are paying part of the price (3000) to the seller on behalf of the bank, this is not permissible. This is because all connection between the client and the original seller must be severed if the bank is to purchase the entire commodity and sell it to the client on a Murabaha basis, so that the transaction does not devolve into an interest-based loan. Furthermore, it is not permissible to pay this amount on behalf of the bank, because in reality it is a loan from the client to the bank, thus combining a sale with a loan condition, which is forbidden.

3 and 4 - Registration and transfer of ownership are for official documentation purposes and do not affect the validity of the transaction, as long as the contract is sound and the bank does not sell until it has acquired ownership and the sold item is under its guarantee.

5 - What the Jordanian company takes for loan guarantees, if it is permissible cooperative insurance, then there is no harm in it. However, if it is commercial insurance, then participating in it is not permissible.

6 and 7 - Hypothecating the bus to the bank until the remaining installments are paid is permissible according to the majority of scholars, and it has been stipulated in the Sharia Standards, as well as approved by the International Islamic Fiqh Academy.