What is the ruling on companies or banks leasing a car for a known period at a monthly rent, on condition that the car becomes the property of the lessee after the period ends, and in the event of not completing the period, its ownership reverts to the company without the lessee recovering the installments paid?
The Council of the Senior Scholars' Authority views that " Muntahiyah bi al-Tamleek" (lease ending with ownership) is not permissible according to . This is because it combines two contracts (sale and lease) on a single item, despite their differing rulings and inherent contradictions. Furthermore, the rent in such contracts is calculated as an installment of the item's price, which leads to injustice when the buyer faces financial difficulty and contributes to the accumulation of debts. The Council believes that the correct approach is a sale with the item mortgaged for its price.
The International Islamic Fiqh Academy has issued a resolution permitting some forms of "Ijarah Muntahiyah bi al-Tamleek."
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/19642
Where this answer came from
- Source platform
- Ftawy
- Original fatwa ID
- 19642
- Added here
- . This is when the answer was added to El Fatwa, not the fatwa's date.
- Text
- Summary from Ftawy's records, reviewed by El Fatwa's sharia committee.
- Read the full ruling
- Read the full answer on Ftawy