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?
And Allah Ta’ala (الله تعالى) knows best.
Mufti Ebrahim Salejee (Isipingo Beach)