Micro Finance Vehicle Lease

Answered according to Hanafi Fiqh by



I work for the public service in Zambia and we are offered vehicles through public service micro finance where they allow u to buy a car without duty over 5 years with monthly installments charge a 5% armourised interest rate.

I am aware we are not allowed to do dealings with interest.

I wanted to know if due to the price of the vehicle been fixed at time of purchase would they be a different ruling?

Below I’m sending u a picture of the example of the way the purchase is set. Please advice





In the Name of Allah, the Most Gracious, the Most Merciful.
As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.

We commend you on your sensitivity to abstain from interest bearing transactions. This attitude stems from your consciousness of Imaan.

It is not permissible to enter into an interest-bearing transaction of any type. Hence, to purchase a vehicle in which there is a parallel interest payment with the principal payment is not permissible. Shari’ah does not only take into consideration the outcome of a transaction. Rather, the procedure and process also plays a key part in determining the legal outcome of a transaction. Therefore, the interest amount being amortised will not make a difference in the impermissibility of the transaction as one will be guilty of engaging in an interest based transaction. [1]

An alternative to the above would be to request the employers to include the interest amount in the principle amount and pay the complete amount as a principal amount. If the employer’s purchase procedure for the vehicles is processed via a set computerised system that does not allow for the removal of the interest amount, a written agreement of sale should be drafted according to the fixed instalments that you have indicated but with the purchase price and instalment amount only reflecting a principal amount. The employer may than process your sale via the computerised system as a formality.

However, it should be borne in mind that this permissibility is based on the premise that there is no interest charged on defaults in payment or via any other avenue.


And Allah Ta’āla Knows Best


Mufti Nabeel Valli

Darul Iftaa Mahmudiyyah

Lusaka, Zambia

[1]  الاختيار لتعليل المختار (2/ 30)

وَقِيلَ الرِّبَا فِي الشَّرْعِ عِبَارَةٌ عَنْ عَقْدٍ فَاسِدٍ بِصِفَةٍ سَوَاءً كَانَ فِيهِ زِيَادَةٌ أَوْ لَمْ يَكُنْ، فَإِنَّ بَيْعَ الدَّرَاهِمِ بِالدَّنَانِيرِ نَسِيئَةً رِبًا وَلَا زِيَادَةَ فِيهِ. وَالْأَصْلُ فِي تَحْرِيمِهِ قَوْله تَعَالَى:

{وَأَحَلَّ اللَّهُ الْبَيْعَ وَحَرَّمَ الرِّبَا} [البقرة: 275] وَقَوْلُهُ: {لا تَأْكُلُوا الرِّبَا} [آل عمران: 130] وَالْحَدِيثُ الْمَشْهُورُ، وَهُوَ قَوْلُهُ – عَلَيْهِ الصَّلَاةُ وَالسَّلَامُ -: «الذَّهَبُ بِالذَّهَبِ مِثْلًا بِمِثْلٍ، وَزْنًا بِوَزْنٍ، يَدًا بِيَدٍ، وَالْفَضْلُ رِبًا، وَالْحِنْطَةُ بِالْحِنْطَةِ مِثْلًا بِمِثْلٍ، كَيْلًا بِكَيْلٍ، يَدًا بِيَدٍ، وَالْفَضْلُ رِبًا، وَالشَّعِيرُ بِالشَّعِيرِ، مِثْلًا بِمِثْلٍ، كَيْلًا بِكَيْلٍ، يَدًا بِيَدٍ، وَالْفَضْلُ رِبًا، وَالتَّمْرُ بِالتَّمْرِ، مِثْلًا بِمِثْلٍ، كَيْلًا بِكَيْلٍ، يَدًا بِيَدٍ، وَالْفَضْلُ رِبًا، وَالْمِلْحُ بِالْمِلْحِ، مِثْلًا بِمِثْلٍ، كَيْلًا بِكَيْلٍ، يَدًا بِيَدٍ، وَالْفَضْلُ رِبًا» وَأَجْمَعَتِ الْأُمَّةُ عَلَى تَعَدِّي الْحُكْمِ مِنْهَا إِلَى غَيْرِهَا إِلَّا مَا يُرْوَى عَنْ عُثْمَانَ الْبَتِّيِّ، وَدَاوُدَ الظَّاهِرِيِّ وَلَا اعْتِمَادَ عَلَيْهِ

This answer was collected from, which serves as a gateway to Darul Iftaa Mahmudiyyah – Lusaka, Zambia.

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