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: FtawySummarized from the full answer at Ftawy · imported 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).
Summarized from the full answer at Ftawy · imported
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- 152885
- Imported
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