Fatwa: # 16102
Category: Business Matters
Country: Pakistan
Date: 25th January 2008

Title

I want to get a car from bank. As you know I have to pay interest on it. Pls. tell me if it will halal or haram.

Question

I want to get a car from bank. As you know I have to pay interest on it.  Pls. tell me if it will halal or haram. If it is haram then can I go to islami bank for the same reason.

Answer

In the name of Allah, Most Gracious, Most Merciful

Assalaamu `alaykum waRahmatullahi Wabarakatoh

Interest is explicitly prohibited in the Quraan. It is from amongst those acts that Allah declares war with those who are involved in it. Allah says

فَإِنْ لَمْ تَفْعَلُوا فَأْذَنُوا بِحَرْبٍ مِنَ اللَّهِ وَرَسُولِهِ

 (And if you don’t do it i.e. leave out interest, then take a notice of war from Allah and his messenger)(Al Baqarah 279)

Nabi (sallallahu alayhi wasallam) has also cursed every individual who takes part in any step of an interest bearing transaction.

لعن رسول الله صلى الله عليه وسلم آكل الربا ومؤكله وكاتبه وشاهديه قال هم سواء

(رواه مسلم و الترمذي)

(Rasulullah (sallallahu alayhi wasallam) has cursed the one who accepts interest,the one who gives it, the one who records it and those who witness it and said:"They are all equal")(Mishkaat 1/244, Qadeemy kutub khana)

Nabi (sallallahu alayhi wasallam) described interest as being worse than committing adultery 36 times.

درهم ربا يأ كله الرجل و هو يعلم اشد من ستة و ثلاثين زنية (رواه احمد والدار القطنى)

(A dirham of interest which a person eats intentionally is worst than (perpetrating) adultery 36 times)(Mishkaat 1/246, Qadeemy kutub khana)

It is not permissible for you to purchase the car from a conventional bank. (Jadeed fiqhi mabaahith 210, Sarkaary sudy qardhe {Faqihul ummah} 8, Ahsanul fataawa 1/293)

If there is an Islamic bank, the following alternative may be considered…"The bank (could be requested to) first buy the item from the original owner, add an appropriate profit, then sell it onwards to the customer and realize its total price in installments.(Murabahah)"(Contemporary fatawa 291, Mufti Taqi Uthmani)

And Allah knows best

Wassalam

Ml. Ismail Moosa,
Student Darul Iftaa

Checked and Approved by:

Mufti Ebrahim Desai
Darul Iftaa

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