Is a loan of $33,0 provided by the state for the purchase of machinery, to be repaid in installments totaling more than 23,0 Libyan Dinars (the original amount in local currency), considered an interest-based (riba) loan, especially given the instability of the dollar exchange rate in Libya and the fact that the contract cannot be canceled?
Source: FtawySummarized from the full answer at Ftawy · imported Sep 2, 2026
It is permissible to purchase machinery in installments from a bank if the bank first acquires ownership of it and then sells it to you at a profit, provided that the price is not increased after the agreement due to a delayed installment. It is also permissible for the bank to pay the price of the machinery on your behalf, for you to repay it in installments without any increase over the original price; otherwise, it would be usury (riba). If the transaction was prohibited and you were forced into it, then the sin is upon the one who coerced you.
Summarized from the full answer at Ftawy · imported
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- 50112
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