What is the ruling on selling by installments with a 7% payment of the installment value as bank interest, even though the contract is directly with the owner?
Source: FtawySummarized from the full answer at Ftawy · imported Sep 2, 2026
If the bank pays the seller the price of the sold item immediately, and then collects the price from the buyer with interest, this is forbidden usury (riba), even if the contract is directly with the owner, and the buyer's ignorance of the bank's involvement in the transaction does not change the ruling.
Summarized from the full answer at Ftawy · imported
Read the full answer on Ftawyhttps://ftawy.com/en/questions/177173
Where this answer came from
- Source platform
- Ftawy
- Original fatwa ID
- 177173
- Imported
- Translation status
- Source text, unreviewed
- Read the full ruling
- Read the full answer on Ftawy