Muraabahah

Submitted by admin on Wed, 2019-07-24 08:26

Q: I am from India. Here car loans (financing) is available in such a way that banks will pay the complete amount to the car dealers not to us. Is it lawful to finance a car from the bank? If the car original price is four lakhs and the bank earned the profit and fixed the amount to 5 lakhs, and I am told to pay this 5 lakhs in instalments (partly) of 36 months in equal amount. Please tell me, is this scheme valid according to Shariah? Does it come under muraabahah? If the car dealers itself has a financing company, is it permissible in this case also?

A: If the bank purchased the car and after taking possession they sold it to you for a profit then it is permissible and you may call it muraabahah.

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

Answered by:

Mufti Ebrahim Salejee (Isipingo Beach)

Category:

Business and Dealings›Islamic Finance

Disclaimer: The answer hereby given is specifically based on the question asked and should be read together with the question asked. Muftionline.co.za bears no responsibility to any party who may or may not act on this answer. Muftionline.co.za being hereby exempted from loss or damage whatsoever caused. Should the question refer to a matter in dispute between two parties, this answer may not be used in the dispute in question by either party unless the question was jointly submitted by both parties with an acknowledgement by both parties that the question was correct and accurate. This answer may not be used as evidence in any court of Law without prior written consent from Muftionline.co.za.

This is the standard version of the site.