What is the ruling, according to the Hanafis, on seeking financing from a bank to purchase project equipment, where the bank then buys the equipment and sells it to me in installments, knowing that I was the one who requested it and it was not previously owned by the bank?
Installment sales, also known as Murabaha for the one who commands the purchase, are permissible with their specific controls and conditions. This is also permissible according to the Hanafis. Al-Sarakhsi mentioned that if a man instructs another to purchase a house for one thousand dirhams, and promises to buy it from him for one thousand one hundred, and if the instructed party fears that the instructing party might not desire it, he should purchase it with a three-day option and take possession, then sell it to the instructing party. There is no need for possession and the option clause according to Abu Hanifa and Abu Yusuf for the permissibility of disposing of real estate before taking possession.
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- 181949
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