I am working in a private company. My office is 20 kilo meters from my home. I need to purchase a bike but i can not purchase by giving full amount. Other option is to purchase on installments by taking two wheeler loan, but this is not allowed in islam. Some company gives bike on installments on 0% interest and they charge 3 to 4 thousand extra and say that this is for file processing. Is it allowed to purchange the twowheeler through this scheme? Can i buy or i should wait to collect the complete money.
Answer
(Fatwa: 1201/885=H/1429)
If the time is fixed to pay installments, then the easiest way for you is to deal with the company saying (for example): “I purchase the vehicle for four thousand rupees and I will pay the amount in installments in so and so time”. If the company agrees, this purchase on credit will be valid and correct. But, if this very dealing is made in this way that you buy the car in three thousand rupees and pay installments as per four thousand rupees, then the dealing will be unlawful.
Allah (Subhana Wa Ta’ala) knows Best
Darul Ifta,
Darul Uloom Deoband