What is the ruling on working for a company that finances car purchases for its employees and pays the interest to the banks on their behalf, then deducts the amount from their salaries in installments, and stipulates that they must repay the principal and the interest paid on their behalf if they leave work before five years, or transfer ownership of the car to the company along with paying the difference?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
The company's act of borrowing with interest from the bank is forbidden because it is an interest-based loan (riba). It is not permissible for employees to purchase a car in this manner, as it involves cooperation in usury, in accordance with the Almighty's saying: "And do not cooperate in sin and aggression."
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
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- Ftawy
- Original fatwa ID
- 79395
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- . 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