Home » Hanafi Fiqh » Darulifta-Deoband.com » I want to purchase a car but the original price of car is 4.0 lakh in cash, but I do not have sufficient amount in cash. So one of the third party (bank, finance party) is ready to give the full amount on the basis of part payment for 5 years, but he will claim on that amount total 5.0 lakh after completion of 5 years on the basis of per month installment. Which have been fixed amount before purchasing a car in the agreement? Question No. (1) So please let me know that weather this type of finance is permissible in Islamic Shariah or it comes under the normal interest pattern?

I want to purchase a car but the original price of car is 4.0 lakh in cash, but I do not have sufficient amount in cash. So one of the third party (bank, finance party) is ready to give the full amount on the basis of part payment for 5 years, but he will claim on that amount total 5.0 lakh after completion of 5 years on the basis of per month installment. Which have been fixed amount before purchasing a car in the agreement? Question No. (1) So please let me know that weather this type of finance is permissible in Islamic Shariah or it comes under the normal interest pattern?

I want to purchase a car but the original price of car is 4.0 lakh in cash, but I do not have sufficient amount in cash. So one of the third party (bank, finance party) is ready to give the full amount on the basis of part payment for 5 years, but he will claim on that amount total 5.0 lakh after completion of 5 years on the basis of per month installment. Which have been fixed amount before purchasing a car in the agreement? Question No. (1) So please let me know that weather this type of finance is permissible in Islamic Shariah or it comes under the normal interest pattern?

Answer

(Fatwa: 2035/B=420/TB=1432)

It is not lawful method. It is interest. However there is one method to make it lawful and save oneself from interest that one lakh rupees which one has to pay as interest in paying the price of 4 lakh in instalments, so you should fix the total amount of five lakh rupees as total price of the car and will say that you were buying this car in five lakh rupees and you will pay the price in instalments. Thus you can avoid interest and purchasing of the car shall be right as per the Shariah.

Allah (Subhana Wa Ta’ala) knows Best

Darul Ifta,
Darul Uloom Deoband

This answer was collected from the official ifta website of Darul Uloom Deoband in India.

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