Is it permissible to purchase a car by paying a down payment to the dealership, then the bank pays the remaining amount with an added profit margin, and I, in turn, repay the bank in installments?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
The aforementioned transaction is not permissible, because the bank lends you the remaining car price, with the condition that you repay it in installments with an increase. This is precisely the forbidden Riba (usury). The solution is to search for a bank that conducts Islamic Murabaha (cost-plus financing) in accordance with the Shariah-compliant regulations outlined in no. 31758 and Fatwa no. 56213.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/155647
Where this answer came from
- Source platform
- Ftawy
- Original fatwa ID
- 155647
- 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