Is it permissible to purchase goods on installment with an additional percentage added to the price in exchange for the term?

Question:
Your Eminence the Shaykh, the questioner says: A bank opened a loan fund where you request a specific car, they purchase it for you, and then you pay this amount in installments with a ten percent increase on every ten thousand. What is the ruling on that?

Answer:
If the purchase is on installment, there is nothing wrong with it. However, taking money from him via riba (usury or interest) is not permissible. But if you buy a car from him or anyone else on installment—for example, it is worth twenty thousand and you buy it for thirty thousand on installment, or it is worth forty thousand and you buy it for fifty thousand on installment from them or others—installment sales fall under the saying of the Exalted and Majestic is He: So if you buy a car on installment for a known term, after they have taken possession of it and acquired it—if the bank acquires it, or Zayd or 'Amr acquires it—it becomes their property, and if you buy it for a specified term, there is no harm in buying it for a specified term.