What is the ruling on using the "installment" card issued by an Islamic bank, which allows the customer a loan of 1000 dinars (800 in cash and 200 for purchases), to be repaid in monthly installments without interest or late fees, with an issuance or renewal fee? Is it permissible to transfer one's salary to this bank to obtain this loan? Is this loan considered to be drawing benefit for the bank by increasing its customers?
Renewing a credit card for a fixed fee and a specified cash withdrawal commission is permissible if it does not involve usurious increment on the principal debt. These are considered fees for services rendered, provided they are not linked to the loan amount or its duration. As for transferring to an Islamic bank to obtain a credit card, there is no objection to that.
Summarized from the full answer at Ftawy · reviewed Sep 2, 2026
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