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The question

What is the ruling on dealing with banks that charge interest in exchange for financing the purchase of machinery for an entire factory, or through partnership, in order to employ unemployed youth in light of difficult economic conditions?

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

Selling what you do not own is invalid. Accordingly, if the factory owner and the bank enter into a contract regarding the matter before the machinery comes into the bank's possession, this contract is invalid. However, if what transpires between the two parties is merely a promise, and then the bank purchases the machinery and sells it to the applicant for a price they both agree upon, there is no objection to this, provided that the bank does not stipulate an increase in case of inability to pay, otherwise it would be usury. As for the bank lending the applicant the price of the machinery for him to purchase it himself, with the bank adding its interest, this is also pure usury.

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Where this answer came from
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Ftawy
Original fatwa ID
54417
Imported
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Source text, unreviewed
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