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The question

Is the aforementioned arrangement, in which an Islamic bank finances the purchase of furniture and apartment renovations through a third party, lawful, provided that the amount is repaid with an increment in installments, with the possibility of early repayment at a reduced profit?

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Source: FtawySummarized from the full answer at Ftawy · imported Sep 2, 20261 min readAlso available in العربية
The answer

Murabaha for the one who orders the purchase through the bank has two forms: permissible and forbidden. It is permissible for the buyer to act as an agent for the bank in the purchase and delivery. The consideration in contracts is their realities, not their wordings. What is apparent from the aforementioned transaction is that it is a forbidden usurious loan, due to the bank not purchasing the commodity and it not entering into its possession and guarantee before selling it to the customer.

Summarized from the full answer at Ftawy · imported

Read the full answer on Ftawy
Source platform
Ftawy
Original fatwa ID
108750
Imported
Translation status
Source text, unreviewed
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