Assalamu Alikkum, We have Islamic Bank here in UAE Providing Loan for Purchasing the Car, If we intersted in one car(Whether new or second hand) we should go to the bank with the seller(if new the dealer details and qutation from the dealer), then the bank will purchase the car from the seller or dealer and will sell to us with a certain profit, and the total amount(original price the profit taken by the bank) can be paid in installments. may i know this loan is islamic??(As the bank is not a car dealer or an auto dealer) Working in such an islamic bank is halaal?, particularly on this section. Thank You, Jazakallah Kheir
Answer
(Fatwa: 1365/1050=H/1429)
If the bank purchases the car and takes it in its possession and then sells it on fixed profit, then the buying and selling both are Islmically lawful. Also, it is permissible to receive the fixed amount from a buyer in instalments. However, the dealing is lawful and valid. If such transaction is rendered in banks or other transactions are also made in compliance with Islamic rulings and they do not transgress the Shariah boundaries, then it is allowed to work in such banks and the income also shall be halal. However, if you have any doubt, write it to us.
Allah (Subhana Wa Ta’ala) knows Best
Darul Ifta,
Darul Uloom Deoband