What is the ruling on buying a car from the bank through Islamic Murabaha, where the bank buys the car and it remains in its name, then sells it to me in installments?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
This transaction is called Murabaha banking. For it to be religiously permissible, two essential conditions must be met: The bank must fully acquire ownership of the car, and then sell it to the buyer. The bank must not charge interest on overdue car installments. There is no harm in the car remaining registered under the bank's name, as this falls under the category of pledging the sold item with the seller.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/141889
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- Ftawy
- Original fatwa ID
- 141889
- 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