I want to purchase a car through one of Indian banks for 2 years loan basis. The bank will pay whole amount to the car company and will deduct from salary on monthly basis with 12 person interest. For example if the car cost the bank 5 lakh the bank will charge me with 5 lakh 50 thousand rupees. Please let me know if it is ok in the light of Islamic Shariah.
Answer
(Fatwa: 2023/1634/B=1432)
It is not lawful condition that you wrote. Its lawful procedure is that you buy the car for the total amount five lakhs and fifty thousand rupees i.e. the original price of car and instalments with interest are put together as total price, and then keep on paying it in instalments. Thus you would be saved from the sin of paying interest.
Allah (Subhana Wa Ta’ala) knows Best
Darul Ifta,
Darul Uloom Deoband