Agreement with his brother to borrow from the bank and give him an amount to buy a car, and buy a car with the remaining amount
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Q1: My brother and I agreed that I would buy a car from the Saudi American Bank in my name, because my salary is with them, on the condition that I sell this car and give my brother 30,000 riyals to buy a car for him; because his financial circumstances are difficult, and I would buy a car for myself with the remaining amount. The total amount, including interest over five years, was 169,000 riyals, with monthly installments of 2,800 riyals. The installment amount is very heavy for me, and I am unable to pay it alone. My brother agreed to pay 800 riyals per month with me, as the total amount of 169,000 riyals includes 44,000 riyals in interest over
five years, and my brother's amount, after taking the interest into account, came to approximately 39,000 riyals. Please advise us, may Allah reward you with good.
A1: If the intention of the questioner and his brother when buying the car was that the car would be owned by both of them, then it is permissible for the questioner's brother to pay a portion of the car's monthly installment. However, if the intention was that the car would be owned by the questioner alone, and that he gave his brother 30,000 from the price for which it was sold, on the condition that he would pay 800 riyals from the car installment so that the amount he pays reaches 39,000 as stated in the question, then that is not permissible, because both usury of excess in a like-for-like exchange and usury of deferment are present in it.
five years, and my brother's amount, after taking the interest into account, came to approximately 39,000 riyals. Please advise us, may Allah reward you with good.
A1: If the intention of the questioner and his brother when buying the car was that the car would be owned by both of them, then it is permissible for the questioner's brother to pay a portion of the car's monthly installment. However, if the intention was that the car would be owned by the questioner alone, and that he gave his brother 30,000 from the price for which it was sold, on the condition that he would pay 800 riyals from the car installment so that the amount he pays reaches 39,000 as stated in the question, then that is not permissible, because both usury of excess in a like-for-like exchange and usury of deferment are present in it.
Source
www.alifta.gov.sa
The Arabic text is copied verbatim from the original source, without any edits.