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Is vehicle financing permissible?

Answered as per Hanafi Fiqh by Fatwa-TT.com

السلام عليكم

I would like to purchase a car to get to work and home easier. I Currently Reside in South and work in the North and it is difficult for me to travel to and from work.

Are there any facilities in Trinidad that can facilitate financing of a vehicle for persons who cannot afford to purchase one outright?
I am looking for any type of vehicle that can take me from A to B.

I have looked at some Foreign used facilities who have said that they offer financing but after investigation, I found that they go through the Bank and it is basically a loan that is taken. I would like to avoid taking interest.


In the Name of Allah, the Most Gracious, the Most Merciful.

As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.

At the outset, we commend
you for your interest and sensitivity on adopting halal and abstaining from

As you mentioned, the
financing offered by the vehicle companies is generally an interest based loan,
which is Haraam and must be avoided.

If one is unable to find a
vehicle dealer who is ready to sell the vehicle on installments (without
financing from a bank), then the only option is to approach the financing bank
and ask for them to fully purchase the vehicle from the dealer, then resell you
the vehicle on installments (accordingly the bank will still make their same

However as Muslims, even in
the absence of  proper Halal
alternatives it is imperative we strive to abstain from Haram. The Muslim
community should also endeavor to provide such Halal solutions for
the Muslim community. We hope and make Dua that in the near future there will
be such resources available for the Muslim community.

And Allah Ta’āla Knows Best

Mufti Arshad Ali

Darul Iftaa, Jaamia Madinatul Uloom (Trinidad)


This answer was collected from Fatwa-tt.com, which is operated by the Darul Iftaa of Jaamia Madinatul Uloom (Trinidad and Tobago) under the advice and guidance of Mufti Ebrahim Desai (Daamat Barakaatuhum) of South Africa.

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