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?
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.
Summarized from the full answer at Ftawy · reviewed Sep 2, 2026
Read the full answer on Ftawyhttps://ftawy.com/en/questions/18367