Is it permissible to take out a loan from a bank to purchase a car essential for work, knowing that the company will pay the installments and the car will be registered in the employee's name?
Borrowing from a bank with interest is forbidden usury. Its consumer and provider are cursed. If the questioner is the borrower with interest, it is not permissible for him to do so except out of necessity, which is defined as the المكلف (responsible person) reaching a state of perishment or near perishment if he does not partake of the forbidden. However, if the company is the one borrowing to buy the car and then grants its ownership to the questioner without any involvement of his with the loan, then there is no harm on him, and he may benefit from the car, because the sin of usury relates to the liability of the company, not to the money itself.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/87478
Where this answer came from
- Source platform
- Ftawy
- Original fatwa ID
- 87478
- 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