Is it permissible to purchase a commodity in installments through a bank, where there is no usurious interest on the original price of the commodity, but an amount of money is added as administrative fees for the bank?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
There is no harm in selling an item for more than its market price, even if the reason for the increase is that the price is paid in installments; this is because time has a share in the price. As for the additional amount (240), if the bank takes it in exchange for guaranteeing the buyer, or for paying the price on his behalf and then collecting it back with an increase, then this is usury (riba) and is impermissible. However, if it is in exchange for transferring the installments to the company, then there is no harm in it. The ruling on this increase depends on the reason for taking it.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/144255
Where this answer came from
- Source platform
- Ftawy
- Original fatwa ID
- 144255
- 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