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The question

Is the Islamic murabaha currently practiced in banks permissible, which involves the bank paying a sum of money to the client in exchange for the bank purchasing shares, metals, or cars, provided that the amount is paid in monthly installments?

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Source: FtawySummarized from the full answer at Ftawy · imported Sep 2, 20261 min readAlso available in العربية
The answer

If the bank gives the customer a sum of money to be repaid with an increase, this is usury (riba) and not Islamic murabaha. Islamic murabaha is when the bank buys the commodity and then sells it to the customer in installments at a profit. It is permissible to appoint the bank as an agent to sell the commodity that the customer bought from it after taking possession of it, and to buy shares, metals, or cars with the price of that commodity.

Summarized from the full answer at Ftawy · imported

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Where this answer came from
Source platform
Ftawy
Original fatwa ID
54487
Imported
Translation status
Source text, unreviewed
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