Q:
1. Will it be permissible if one purchases a car by applying to the bank by depositing a certain amount of money and handing over through a negotiation of repayment of an amount financed by the bank including interest in a fixed instalments?
2. Will it be treated same as the fatwa under “paying in instalments” in the English version of “Malfoozat of Faqeeh ul Ummat” compiled by Mufti Farooq Meeruti published by Madrasah Taleemuddeen.
A:
1. If the bank finances the purchase of the car and thereafter allows the client to pay back the interest bearing loan in installments, it will not be permissible regardless of whether the installments are fixed or not.
2. No.
And Allah Ta’ala (الله تعالى) knows best.
Answered by:
Mufti Zakaria Makada
Checked & Approved:
Mufti Ebrahim Salejee (Isipingo Beach)