Assalaam u alaikum warahmatullahi wa barakaatuh
Respected mufti sahib (sallamakumullah)
FNB has opened an islamic investment account just a few years back . it is an account within the fnb’s main account , and the money put into this account they claim does not get mixed with the main accounts money , it is run totally separately by a different admin group .
Their portfolio of investment is only vehicle and property financing .
They finance vehicles through an ijaarah contract .The contract states after the completion of the ijaarah period the car will be given to the lessee as a gift from the side of the bank .
They say this contract is sanctioned by Mufti Ebrahim Desai .
I just want to clarify , is this true .
If it is and that is not a problem will it be fine to invest with this fnb sector or is there any other reason why one should stay away from it ?
In the Name of Allah, the Most Gracious, the Most Merciful.
As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.
We have devised the Ijarah contract of FNB Islamic Finance which included the insurance amount in the monthly instalments. We did not devise nor approve the Ijarah contract with a separate insurance contract. Such a contract is not Shariah compliant. You may obtain the property financing contract and forward to us for our observation.
And Allah Ta’āla Knows Best
Mufti Ebrahim Desai