Is it permissible to obtain a loan from a bank to purchase a car, guaranteed by financial certificates owned by the individual, or by the car itself, with installments paid back to the bank?

The permissibility of the transaction depends on the type of bank:

1. Usurious Bank: Investment certificates are considered a forbidden usurious loan (riba), and it is not permissible to purchase or continue holding them. The interest earned from them is usury (riba) that must be disposed of by giving it to the poor and needy. It is not permissible for a person to spend it for their own benefit unless they are poor and in need.

2. Islamic Bank: It is permissible to borrow from it to purchase a car, using an investment certificate held with the bank as collateral, or by mortgaging the car itself, while adhering to the Sharia regulations that prohibit the mortgagee (creditor) from benefiting from the growth of the collateral. It is permissible to mortgage deposits provided that the account holder is prevented from disposing of them during the mortgage period, and that the funds must be transferred to an investment account if the bank is the mortgagee. Furthermore, it is permissible for the seller to retain a mortgage on the sold item to guarantee their right to the deferred installments.