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Please advise if it is acceptable to approach a conventional bank to effect an asset based transaction where the interest rate and the period of re-payment is fixed?

Answered as per Hanafi Fiqh by Askimam.org
Answer

If the conventional bank offers a loan on interest, it is not permissible
even if the interest rate is fixed. The Qur’aan expressly prohibits every
form of interest.

However, if the bank proposes to purchase the asset and resell it to the
client on a fixed profit, then it will be permissible. The addition on the
purchase amount will be a profit on sales and not interest.

and Allah Ta’ala Knows Best

Mufti Ebrahim Desai

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

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