Is it permissible in Islamic law to purchase a car by installments, paying an upfront sum and additional profit on the remaining installments?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
The described transaction has three possibilities:
1. A loan from the company repaid in installments with interest, and this is usury (riba).
2. A Murabaha sale, where the profit percentage is the company's profit from the sale, and this is permissible.
3. A Murabaha sale, where the profit percentage is a late payment penalty, and this is impermissible.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/61214
Where this answer came from
- Source platform
- Ftawy
- Original fatwa ID
- 61214
- 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