What is the legitimacy of a company obliging its employees to insure cars purchased with an interest-free loan from it, with the insurance value being paid in installments over four years?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
It is permissible for a company to lend money to its employees to purchase cars, and then to mortgage the cars until the loan is repaid. However, if the company leaves the car in the employee's possession, the mortgage becomes void. Commercial insurance on cars during the loan period is Islamically forbidden.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/74010
Where this answer came from
- Source platform
- Ftawy
- Original fatwa ID
- 74010
- 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