To what extent is it permissible to purchase goods in installments from a bank at their original price agreed upon with the seller, knowing that the bank will take a commission from the seller?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
Case One: The bank stipulates that the borrower must purchase the commodity from a specific store from which the bank receives a commission. This is forbidden because it is a loan that brings a benefit to the lender, and every loan that brings a benefit is usury (riba). Furthermore, this condition contradicts the essence of a loan contract, which allows the borrower to dispose of the money as they wish.
Case Two: The bank does not stipulate this. This case is permissible, though it is unlikely.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/69158
Where this answer came from
- Source platform
- Ftawy
- Original fatwa ID
- 69158
- 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