Business and Dealings

Muraabahah

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?

Government assistance

Q: I was legitimately claiming help with medical costs from the UK government for years. They assess whether you are eligible, by asking for details about your income and savings. Then in 2017 my father deposited some money in my account, and told me it is for his future investment. It wasn't my savings. In order to cover up this money, I lied when asked about my savings. I received help as usual, for two years in which I told untruths to the government. Now Allah has shown me the error of my ways. I understand lying is deplorable and I am feeling full guilt for claiming in an unlawful way. It does say that claiming wrongly can earn a penalty, so i fear that my lies mean I owe them money. Rest assured, however, I was still eligible for help with costs as my real circumstances hadn't changed. My question is: do I have to pay back the medical costs? I don't have the money to pay all of those costs I claimed help with. Yet I'm afraid this counts as debt and I won't get into jannah.

Bank reimbursing a service fee

Q: A bank in the US is offering an automatic reimbursement of foreign ATM fees on their checking account. **The reimbursement is in the form of cash, deposited directly into the client's bank account.** Would it be permissible to accept the reimbursement, given that the bank also earns from mortgage interest from people who take mortgages from the bank?

I ask because services such as deals and discounts on 3rd party products through the bank are considered haram. However, in this case, the bank itself is providing reimbursement of fee for a service that is typically charged by other banks.