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?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
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).
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/59321
Where this answer came from
- Source platform
- Ftawy
- Original fatwa ID
- 59321
- 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