What is the ruling on purchasing a car for the company in installments from the bank, with additional charges on the repayment? And is it permissible to acquire it?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
The ruling depends on the terms of the transaction with the bank. If the bank first buys the car and then sells it to you for a profit, and does not impose a penalty for late payment, then there is no harm in that. However, if the bank only pays the price and then collects it back with an increase, without first buying the car for itself, then this is 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/152885
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- Ftawy
- Original fatwa ID
- 152885
- 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