Is it permissible to sell cars in installments in exchange for mortgaging the buyer's property as collateral for the company, with a third-party bank benefiting from 13% of the total mortgaged property?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
If the bank is to pay the value of the car in cash to the seller on behalf of the buyer, and then recover it from the buyer with 13% interest, secured by real estate, then this is clear usury (riba). It is not permissible for the seller to engage in this forbidden transaction.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/104116
Where this answer came from
- Source platform
- Ftawy
- Original fatwa ID
- 104116
- 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