Back to search
The question

What is the ruling of Sharia on a Muslim helping his customers obtain usurious loans from financial institutions to purchase cars from his showroom, knowing that he only receives 75-90% of the car's price from them or from the institution?

Share this answer

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

This method is Islamically forbidden because it is pure usury (riba). Dealing with a usurious institution that pays the value to the seller and recovers it with an increase from the buyer is considered a loan with interest, which is usury of excess (riba al-fadl) and usury of pre-Islamic times (riba al-Jahiliyyah), both forbidden by Allah and His Messenger. Furthermore, stipulating an increase upon delay in repayment is also usury. Aiding usury and facilitating it for people is Islamically forbidden. Therefore, we must not cooperate in sin and aggression. Thus, it is not permissible for you to participate in this usurious transaction; rather, you must seek permissible methods.

Summarized from the full answer at Ftawy · imported

Read the full answer on Ftawy
Where this answer came from
Source platform
Ftawy
Original fatwa ID
20074
Imported
Translation status
Source text, unreviewed
Read the full ruling
Read the full answer on Ftawy