What is the ruling on buying a car in installments from an institution that finances its operations by borrowing money from a bank with interest (riba)?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
It is permissible to engage in transactions, both buying and selling, with a usurer. The Prophet, peace and blessings be upon him, used to deal with the Jews, even though they practiced usury. Borrowing with interest is a major sin, but that does not mean it is forbidden to transact with the borrower in buying and selling. Therefore, there is no harm for you in buying a car from this institution.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/19448
Where this answer came from
- Source platform
- Ftawy
- Original fatwa ID
- 19448
- 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