House or car finance through an Islamic bank

Q: Is it permissible to finance a car or a house through Islamic bank if the period of payment is fixed (e.g. 5 years) but amount of payment is fixed only for 12 months after which it is reviewed and adjusted for inflation? 

A: The manner in which Islamic banks operate does not conform to Shariah. Hence, there are many laws of Shariah that are violated in the process of transacting. Therefore, we do not sanction the dealings of any Islamic bank. 

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

 

Answered by:

Mufti Zakaria Makada

Checked & Approved:

Mufti Ebrahim Salejee (Isipingo Beach)