What is the ruling on a bank purchasing land and selling it to people?
Machine translationRead the Arabic original
Question:
Honorable Shaykh, may Allah grant you success, he says: What is the ruling on a bank purchasing my land and then selling it to me in installments?
Answer:
If the bank buys it, owns it, and takes possession of it, then it is permissible for it to sell it to you. It is permissible for it to sell it to you. But if it buys it for you, pays the price, and then recovers it from you with an increase, that is a loan, not a sale. It bought it for you and on your behalf, and lent you the price with an increase. This is riba (usury or interest). Yes.
Honorable Shaykh, may Allah grant you success, he says: What is the ruling on a bank purchasing my land and then selling it to me in installments?
Answer:
If the bank buys it, owns it, and takes possession of it, then it is permissible for it to sell it to you. It is permissible for it to sell it to you. But if it buys it for you, pays the price, and then recovers it from you with an increase, that is a loan, not a sale. It bought it for you and on your behalf, and lent you the price with an increase. This is riba (usury or interest). Yes.
Source
قناة «العلامة الدكتور صالح الفوزان»، [1596 -3022] ما حكم قيام البنك بشراء أرض وبيعها على الناس؟ - الشيخ صالح الفوزان — youtube.com
The Arabic text is a machine transcription of the audio recording.