Q: If a person is in need of a car and he does not have cash in hand and buys the car through a bank loan, then he pays the bank the EMIs (which have interest). Is it permissible in Islam?
A: Purchasing a car through the bank is impermissible as the element of interest is found. Grave warnings have been sounded in the Ahaadith for the one who gets involved into the major sin of interest. If one is already involved in the sin then one should sincerely repent to Allah Ta’ala and make a firm resolve that one will not repeat the sin in the future. Similarly one should hasten in paying off the interest bearing loan.
Jaabir (radhiyallahu anhu) reported that Rasulullah (sallallahu alaihi wa sallam) cursed the one who consumes interest, pays interest, the scribe for the interesting-bearing deal and the witness to such a deal.”
For further details refer to http://muftionline.co.za/node/7507
And Allah Ta’ala (الله تعالى) knows best.
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