Is the aforementioned arrangement, in which an Islamic bank finances the purchase of furniture and apartment renovations through a third party, lawful, provided that the amount is repaid with an increment in installments, with the possibility of early repayment at a reduced profit?
Murabaha for the one who orders the purchase through the bank has two forms: permissible and forbidden. It is permissible for the buyer to act as an agent for the bank in the purchase and delivery. The consideration in contracts is their realities, not their wordings. What is apparent from the aforementioned transaction is that it is a forbidden usurious loan, due to the bank not purchasing the commodity and it not entering into its possession and guarantee before selling it to the customer.
Summarized from the full answer at Ftawy · reviewed Sep 2, 2026
Read the full answer on Ftawyhttps://ftawy.com/en/questions/108750