What is the ruling on purchasing a car with financing from the Arab Bank, knowing that the bank will finance the purchase, provided that the installment is the car allowance that the questioner receives from the company, since the company prefers that heads of departments own cars?
The described transaction cannot be ruled upon due to lack of knowledge regarding its nature. However, the ruling can be clarified in general:
1. It is impermissible to proceed with the transaction if it is a loan with interest, as this is usury (riba), and its perpetrator is cursed. The -compliant alternative is for the bank to purchase the car first and then sell it to you in installments on a cost-plus-profit basis (murabaha), provided the transaction is free from usurious late payment penalties. 2. If the usurious bank has a completely independent branch for Islamic transactions, and it has a knowledgeable and strict Sharia supervisory board, then there is no objection to purchasing the car through it.
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- Source platform
- Ftawy
- Original fatwa ID
- 136537
- Imported
- Translation status
- Source text, unreviewed
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