Leasing that ends in ownership and its relationship to riba (usury or interest)
Machine translationRead the Arabic original
Question:
Honorable Shaykh, may Allah grant you success, is the transaction of leasing that ends in ownership a form of riba? And was it prohibited for this reason?
Answer:
No, it is not a form of riba. Leasing that ends in ownership is this: the sale is not finalized at the time of the contract; rather, at the time of the contract it is a lease, and then it converts later into a sale. Riba occurs in a deferred transaction, where two contracts are made, and it is not binding immediately.
Honorable Shaykh, may Allah grant you success, is the transaction of leasing that ends in ownership a form of riba? And was it prohibited for this reason?
Answer:
No, it is not a form of riba. Leasing that ends in ownership is this: the sale is not finalized at the time of the contract; rather, at the time of the contract it is a lease, and then it converts later into a sale. Riba occurs in a deferred transaction, where two contracts are made, and it is not binding immediately.
Source
المنتقى من أخبار سيد المرسلين 26-06-1438 هـ — af.org.sa (57:38)
The Arabic text is a machine transcription of the audio recording.