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What is the ruling on repenting from buying a car with usurious financing if the buyer discovers that the transaction is unlawful?

1 min readAlso available in العربية

The correct Murabaha involves the bank purchasing the car and then selling it to the client in two independent contracts, without a late payment penalty. As for usurious banks, they feign purchase while in reality they are lending to the client with interest. If the transaction was not conducted correctly, one must repent and try to pay the installments in full without interest, if possible. Otherwise, one should continue paying while resolving not to revert to such a transaction again.

Summarized from the full answer at Ftawy · reviewed Sep 2, 2026

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