I am employed in a govt. organization of Saudi Arabia. My salary is directly deposited in my current account of Saudi American Bank. I am intended to by a car, this bank is ready to provide the money equal to my gratuity as loan, I have to pay them the money in monthly installment. They are going to hand over the money directly to the car seller, the car seller is transferring the car ownership on my name. This bank charge me extra 6.9% per year, then divide the total amount according to the mutual agreement of the period ( 2 yrs. or 3 yrs.) for the monthly installment. I have to get them the salary certificate from my employer only. Is this allowed according to shariyaah. 2) The car seller is ready to sell the car on installment by increasing the price @ of 8% per year on cash price for agreed period of payment. Guarantor is needed. They will transfer the car ownership on my name. Is this allowed. 3) Another offer of (leasing). In this they sell the car on installments @12% per year, (including mandatory insurance) if the car is 100 $ then if I down pay the 25 $ then the installment they decide 75$+12% more. The ownership is with the car sellers, they will transfer after completion of the installment, I have to pay some more money at the end. Is this too allowed. (Saudi Arabia)
If the rent decreases incrementally as you pay then it’s permissible.
If the bank purchases this from the owner and then sells it to you at a higher price than this is okay. If the car owner or the car is a person or dealer who increases the price in proportion to the amount he wants to make as a profit, and then distributes that amount into installments then this method of transaction is fine. To charge extra 75% is not permissible. However there is a way to make this permissible that is the 75%
ownership of either of the financier or a bank can be rented out and when the financier or the bank receives the rental amount, they can charge extra. Basically, the bank, which has lend 75% of ownership can charge not only the rent, but also, it can recover its own debt by making the rent higher. And as the ownership of the customer increases the rent amount will decrease. This situation is permissible.ss