Taking a profit against a loan

Answered according to Hanafi Fiqh by Muftionline.co.za

Q: Is Islamic banking across GCC correct? they are referring to profit rate for car loan etc. Is this the same as interest? Am I safe to purchase a car through Islamic banking profit rate that they are referring. Bank says it is as per Shari’ah. Please help to sort this doubt as I am about to purchase a car and since I cannot afford full payment, I am preferring Islamic banking. Will I be in danger?

Bismillaah

A: Taking a profit against a loan is interest.

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

 

Answered by:

Mufti Ebrahim Salejee (Isipingo Beach)

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