What is the ruling on purchasing a car with a loan from a bank owned by the car manufacturing company, knowing that this bank deals exclusively with financing the sale of the company's cars?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
If purchasing the car from a company owned by the bank is a condition in the loan contract, then this transaction is forbidden, due to the Prophet's (peace be upon him) prohibition of "a sale and a loan." A loan that brings benefit has been forbidden because it is a contract of benevolence, and the condition of benefit removes it from its original purpose. The combination of a loan and a sale has been forbidden because it is a means to usury.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/140407
Where this answer came from
- Source platform
- Ftawy
- Original fatwa ID
- 140407
- 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