Is it permissible to apply for the state-sponsored initiative to replace old cars with new ones, which involves surrendering the old car as a down payment for the new state-subsidized car, and paying the remaining amount in installments through the Central Bank with deductions from the salary and a penalty for late payments?

The "trade-in" process, where the old car's value is considered a down payment for a new car and the bank pays the remaining amount to the customer, is permissible if the bank purchases the car first and then sells it to the customer at a profit (murabaha). This is conditional on the bank possessing the car before selling it, and that no down payment is taken before the purchase.

However, if the bank's role is solely to finance by paying the remaining amount to the customer with an increase, this is forbidden usury (riba), as it is a loan with an increment.

Furthermore, it is not permissible to deal with a bank if it stipulates a penalty for late payment, even if the customer intends to pay, or if the salary is transferred to the bank. This is because such a condition is usurious and forbidden. The contract must be presented to scholars before entering into it.