What is the ruling on purchasing goods in installments from a bank that does not own or possess them, and that stipulates the buyer must pay compensation if they back out of the purchase?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
The aforementioned transaction is impermissible because, in reality, it is a loan with a stipulated increase upon repayment. The described scenarios are stratagems to achieve forbidden usury (riba). It is obligatory to cease engaging in such transactions.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/18367
Where this answer came from
- Source platform
- Ftawy
- Original fatwa ID
- 18367
- 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