Can you please advise on the following,
I run a business selling cars, the business was started with money saved up, not with a loan.
We arrange finance at the request of the customer, we do not provide the loan for the vehicle the finance company does, we don’t take any commission of the loan company, we just act a middle man.
The customer can arrange the loan with the finance companies before visiting the showroom, they want a complete service of us so we arrange for them.
We don’t take any interest of the customers at all.
We only take the money to cover the value of the car.
We do not force the customer to take the finance option, they have a choice.
Is the above allowed?
If this set up is not allowed, can you suggest a setup that will be.
Wa’alaykum as Salam wa rahmatullahi wa barakatuhu,
Even though the customer is applying for the loan directly with the finance company, it is still not permissible for you to assist with arranging the finance. A senior scholar, Mufti Taqi Uthmani (may Allah preserve him) stated that this falls under the ambit of the following narration:
Jabir (may Allah be pleased with him) narrates that the prophet (sallallahu alaihi wasallam) cursed those who are involved in usury; whether it is the person who is giving usury, receiving it, writing the transaction or witnessing it. (Sahih Muslim 11/28)
You should inform customers that you do not assist with any finance. Our sustenance has been decreed by Allah, and He will still bless you with what has been destined for you.
And Allaah Ta’aala knows best
Ismail Moosa (Mufti)