Is the transaction carried out by the company's savings fund, which involves purchasing a car for an employee for $3,0 to be paid back by the employee with a 5% profit for the fund for each year of repayment, Islamically permissible? If not, what is the solution to make it permissible?
This transaction is impermissible because the role of the fund in it is that of a lender, lending the employee the price of the car and then recovering this price with an increase, and this is precisely the forbidden usury (riba).
Summarized from the full answer at Ftawy · reviewed Sep 2, 2026
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