What is the ruling on a bank that provides a beneficiary with the necessary equipment for their project in exchange for the repayment of the original cost of the equipment along with the bank's profits in monthly installments? Is this usury (riba) or a deferred sale?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
Murabaha for the one who commands the purchase is permissible if the bank buys the required tools and takes possession of them, then sells them to the customer on a deferred or installment basis at a price exceeding the purchase price. However, if the bank does not possess these tools, it is impermissible, because in that case, it would be a loan with interest, which is usury (riba).
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/38817
Where this answer came from
- Source platform
- Ftawy
- Original fatwa ID
- 38817
- 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