Answered according to Hanafi Fiqh by

Q: I am from India. Here car loans (financing) is available in such a way that banks will pay the complete amount to the car dealers not to us. Is it lawful to finance a car from the bank? If the car original price is four lakhs and the bank earned the profit and fixed the amount to 5 lakhs, and I am told to pay this 5 lakhs in instalments (partly) of 36 months in equal amount. Please tell me, is this scheme valid according to Shariah? Does it come under muraabahah? If the car dealers itself has a financing company, is it permissible in this case also?


A: If the bank purchased the car and after taking possession they sold it to you for a profit then it is permissible and you may call it muraabahah.

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


Answered by:

Mufti Ebrahim Salejee (Isipingo Beach)

This answer was collected from, 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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