What is the ruling on the installment system of "SAB Amana" if it involves paying 10% directly to the seller and deferring the remaining amount with a profit margin determined by the bank?

It is not permissible to purchase goods using this system due to several Sharia (definition)-related prohibitions:

1. The bank stipulating a late payment penalty, which is explicit usury (riba), regardless of whether the bank keeps the penalty for itself or distributes it to the poor. A resolution to this effect has been issued by the Islamic Fiqh Academy. 2. If the bank is to purchase the goods from the seller, it is not permissible for it to sell them until it has moved them from the seller's location to another location owned by the bank. 3. If the bank does not purchase the goods from the store, but rather pays the remaining price to the seller as a loan to the buyer and obtains usurious interest from him, then this is usury from the very origin of the transaction.