Conventional Hire Purchase

Answered according to Hanafi Fiqh by

Mufti Saab I want to know if leasing a car in Canada is haram. They have 0.9% interest rates on leasing. Does it depend on the way the contract is written ?



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

As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh

Conventional Hire Purchase (HP)/leasing scheme are impermissible and not Shariah Compliant. 


Shariah Compliancy in financial dealings refers to the correct implementation of the contractual agreements in ensuring the products offered are 100% Shariah Compliant. Therefore aside from the contractual agreements being Shariah Compliant, the product should be treated and implemented according to the Shariah Laws of Finance and Economics.


And Allah Ta’āla Knows Best


Ismail Desai,

Darul Iftaa


Checked and Approved,

Mufti Ebrahim Desai.