Is paying installments for gas delivery to the company, with the phrase "loan installment" in the contract, considered an interest-based loan or an installment sale with a commission?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
If the company involved the bank in the transaction as a lender with interest, then this is a usurious loan forbidden [in Islam]. Clients must rid themselves of it by expediting the repayment of the loan without interest, or by rescinding the contract if no significant harm results. However, if the bank's role is merely administrative and organizational (which is unlikely), then there is no objection to it charging a fee for its work.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/82040
Where this answer came from
- Source platform
- Ftawy
- Original fatwa ID
- 82040
- 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