Is the personal financing provided by Bank Albilad for financing local shares in installments, whereby the bank finances the purchase of shares and holds them in an investment portfolio, then sells them to the customer at their original price plus a profit margin, and then the customer repays their value to the bank in the form of monthly installments, permissible or impermissible?
Source: FtawySummarized from the full answer at Ftawy · imported Sep 2, 2026
The steps mentioned are correct and verifiable, with an emphasis on four matters: the client's selection of pure shares, ensuring the shares enter the portfolio before selling them, selling them personally to a third party other than the bank if he wishes to obtain cash, and the installment contract being free of a penalty clause for delay. It does not affect if the bank takes an increase over the cash price or administrative fees, but if the bank handles all operations, it is not permissible to carry them out.
Summarized from the full answer at Ftawy · imported
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