The company lent the buyer the price with an increase
Machine translationRead the Arabic original
The first question of fatwa number ( 20872 )
Q1: A man bought a car from another man for a cash price, but the buyer did not have the price with him. The seller and the buyer went to a company that pays the price on behalf of the buyer to the seller in full, and installs the amount with an increase on it for the buyer in installments. For example: the value of the car is (50,000), which the company pays to the seller and records on the buyer as (70,000) in installments. What is the ruling on this? And may Allah reward you with good.
A1: This transaction is not valid; because its meaning is that the company lent the buyer the price with an increase, and this is clear `riba` (usury or interest) and forbidden by the Qur'an, the Sunnah, and scholarly consensus; because it is `riba al-nasi'ah` (usury of deferment). And success is from Allah, and may Allah send prayers and blessings upon our Prophet Muhammad, his family, and his Companions.
Q1: A man bought a car from another man for a cash price, but the buyer did not have the price with him. The seller and the buyer went to a company that pays the price on behalf of the buyer to the seller in full, and installs the amount with an increase on it for the buyer in installments. For example: the value of the car is (50,000), which the company pays to the seller and records on the buyer as (70,000) in installments. What is the ruling on this? And may Allah reward you with good.
A1: This transaction is not valid; because its meaning is that the company lent the buyer the price with an increase, and this is clear `riba` (usury or interest) and forbidden by the Qur'an, the Sunnah, and scholarly consensus; because it is `riba al-nasi'ah` (usury of deferment). And success is from Allah, and may Allah send prayers and blessings upon our Prophet Muhammad, his family, and his Companions.
Source
www.alifta.gov.sa
The Arabic text is copied verbatim from the original source, without any edits.