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Asking one’s company to purchase a car on interest

Answered as per Hanafi Fiqh by Muftionline.co.za

Q: I am working in a private software company from the last 10 years and over the few years, my bonuses and some part of salary amounts are not received (approximately 6 lacs INR) from my Employer due to financial issues of the company. I trust my Employer and there are no issues there. However, it is difficult for my employer to pay me that much amount to me and as the current trend of company, if ever they have to pay, it will take at least 2-3 years for me to receive my money and that too in several installments, which will not be much use to me. So here is what I am planning. I wanted to ask my employer to buy a car for me (its current worth is 5.2 lacs). The employer can take it in form of EMI and can buy me the car, so that he can take care of paying monthly installments. But here, with EMI, the car amount will become 6 lacs (because of EMI, interests, etc).

1. Now if I take the car and consider that as payment for my 6 lacs amount, it looks like I have taken the interest, because my money went in buying the car as well as paying the interest amount. Is my understanding correct? Is there a way for me to execute the plan without me taking the interest?

2. Can I ask my employer to pay me remaining 80k (6 lacs – 5.2 lacs) separately. So even though the car costs 6 lacs (due to emi), the company takes care of the additional 80k. My money 5.2 lacs only goes towards the actual cost of the car and not towards interest. Is this correct way of asking company to take care of additional burden?

3. Is there any other alternative way?


A: If the increased amount is in exchange of a loan then obviously it will be interest.

And Allah Ta’ala (الله تعالى) knows best.

Answered by:

Mufti Ebrahim Salejee (Isipingo Beach)

This answer was collected from MuftiOnline.co.za, where the questions have been answered by Mufti Zakaria Makada (Hafizahullah), who is currently a senior lecturer in the science of Hadith and Fiqh at Madrasah Ta’leemuddeen, Isipingo Beach, South Africa.

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