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Is there a way for me to execute the plan without me taking the interest?

Answered according to Hanafi Fiqh by Askimam.org

 I am working in a private software company from the last 10 years and over the few years, my bonuses and some part of salary amounts are not received (approximately 6 lacs INR) from my Employer due to financial issues of the company. I trust my Employer and there are no issues there.

However, it is difficult for my employer to pay me that much amount to me and as the current trend of company, if ever they have to pay, it will take atleast 2-3 years for me to receive my money and that too in several installments, which will not be much use to me.

So here is what i am planning.

I wanted to ask my employer to buy a CAR for me (its current worth is 5.2 lacs). The employer can take it in form of EMI and can buy me the car, so that he can take care of paying monthly installments.

But here, with EMI, the car amount will become 6 lacs (bcoz of EMI, interests, etc).

1. Now if i take the car and consider that as payment for my 6 lacs amount, it looks like i have taken the interst, bcoz my money went in buying the car as well as paying the interest amount. 

Is my understanding correct? Is there a way for me to execute the plan without me taking the interest? 

2. Can i ask my employer to pay me remaining 80k (6 lacs – 5.2 lacs) separtely. So even though the car costs 6 lacs (due to emi), the company takes care of the additional 80k. My money 5.2 lacs only goes towards the actual cost of the car and not towards interest.

Is this correct way of asking company to take care of additional burden?

3. Is there any other alternative way?

Answer

In the Name of Allah, the Most Gracious, the Most Merciful.

As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.

Could you please provide further clarification on the following:

  1. You refer to payment through EMI. Could you please explain what EMI is and how it works?
  2. Is the company you working for owned by a Muslim or Non-Muslim?
  3. Are you proposing that the company buy the car completely and simply hand over the car? The company will be responsible for all negotiations and payments?
  4. You state that the car is worth 5.2 lacs. In the event of payment through instalments, how is the “interest” calculated? Is it a fixed amount which has been agreed upon to be paid per month together with the principle?
  5. Is the duration for the amounts due to be paid known at the time of sale?

And Allah Ta’āla Knows Best

Safwaan Ibn Ml Ahmed Ibn Ibrahim  

Student Darul Iftaa
Limbe, Malawi

Checked and Approved by,
Mufti Ebrahim Desai.

This answer was collected from Askimam.org, which is operated under the supervision of Mufti Ebrahim Desai from South Africa.

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