What is the ruling on an employer taking a large financial guarantee from an employee, exceeding the price of the car, in exchange for providing him with a car and a large salary, on the condition that each of them gets their money back at the end of the employment period, given the employer's need for this amount?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
This transaction is a loan from the employee to the employer, from which the employer benefits by repaying its equivalent after a period, in exchange for an increase in the employee's salary and his personal use of the car. This is forbidden because every loan that draws a benefit is usury (riba). Ibn al-Mundhir transmitted the consensus of scholars on the prohibition of a creditor stipulating an increase or a gift in a loan.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
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- Ftawy
- Original fatwa ID
- 142313
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- Summary from Ftawy's records, reviewed by El Fatwa's sharia committee.
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- Read the full answer on Ftawy