What is the ruling on borrowing from the bank? Borrowing a car, knowing that their conditions are: First: the car is owned partially, and the dealership does not have the freedom to dispose of it.
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The questioner : May Allah preserve you, O Shaykh! Peace be upon you and Allah's mercy and blessings. What is the ruling on borrowing from the bank? Borrowing a car, knowing that their conditions are:
First: they own it partially, and the dealership does not have the freedom to dispose of it.
Second: - With you, O Shaykh? -
The Shaykh : Yes.
The questioner : Second: the interest increases daily when the installment is delayed beyond the specified time. Third:
The Shaykh : And what is his question?
The questioner : Second: the interest increases daily when the installment is delayed beyond the specified time.
The Shaykh : What? It increases?
The questioner : It increases.
The Shaykh : It increases, meaning, it increases.
The questioner : One of their conditions is taking one percent when one withdraws from the loan, claiming it is fees. Fourth - and it is the last one - transferring the monthly salary to them.
The Shaykh : Yes. This transaction, may Allah reward you, is forbidden, because the bank only bought the car for your sake. And it did not buy it for your sake except for the sake of riba (usury or interest). Therefore, it cannot sell it to you at its capital cost. So this sale is a sale that is not intended; it is a sale used as a ruse to make permissible what Allah the Mighty and Majestic has forbidden. Rusing to make a forbidden thing permissible does not make it permissible, just as rusing to avoid an obligatory thing does not drop it. Even if people give you a fatwa (a scholarly legal ruling) and you give them one, it is forbidden. I will give you an example, my brother: Which of these ruses is closer to the forbidden thing, or the ruse of the Jews who were forbidden fat, so they melted it and sold the lard and ate its price? There is no doubt that this ruse, which confused some scholars so they issued a fatwa permitting it, is closer to being forbidden than the ruse of the Jews. Yes, if it were the case that the bank owned the car, it was in its possession, and in its warehouse it was worth fifty in cash, and a person came and said: I want to take it for sixty deferred. And the debt does not increase by the delay in payment, then this is a valid sale. But the scholars differed on whether the person seeking the car does not want the car itself, but only its value, such that if he buys it, he sells it immediately and takes the value. This is the issue of tawarruq (a commodity sale used to obtain cash). The scholars, may Allah have mercy on them, differed on it, and the Shaykh al-Islam, may Allah have mercy on him, forbade it strictly and was severe in it - I mean Shaykh al-Islam Ibn Taymiyyah - and he is sufficient in knowledge, jurisprudence, and scrupulousness. He said: This is forbidden. And he said: O, glory to Allah! How does the forbidden riba, which is in the Book and the Sunnah, and for which there is a warning that has not come for any sin other than shirk (associating partners with Allah), how does it become lawful by this ruse? He considers tawarruq to be forbidden. And that it is from 'inah (a buy-back sale used to disguise a loan), and he mentioned it explicitly from Imam Ahmad, may Allah have mercy on him.
As for our issue that the questioner pointed to, the bank does not own it. But you came to it and said: I choose such-and-such car in such-and-such dealership. It said: Go see how much it is worth, then come back to me. Then I buy it from the dealership for fifty and sell it to you for sixty at a deferred time. So no one who reflects on it with true reflection doubts that it is forbidden. Yes.
The questioner : O Shaykh, if you permit us, there is a question before the time ends.
The Shaykh : Very well.
First: they own it partially, and the dealership does not have the freedom to dispose of it.
Second: - With you, O Shaykh? -
The Shaykh : Yes.
The questioner : Second: the interest increases daily when the installment is delayed beyond the specified time. Third:
The Shaykh : And what is his question?
The questioner : Second: the interest increases daily when the installment is delayed beyond the specified time.
The Shaykh : What? It increases?
The questioner : It increases.
The Shaykh : It increases, meaning, it increases.
The questioner : One of their conditions is taking one percent when one withdraws from the loan, claiming it is fees. Fourth - and it is the last one - transferring the monthly salary to them.
The Shaykh : Yes. This transaction, may Allah reward you, is forbidden, because the bank only bought the car for your sake. And it did not buy it for your sake except for the sake of riba (usury or interest). Therefore, it cannot sell it to you at its capital cost. So this sale is a sale that is not intended; it is a sale used as a ruse to make permissible what Allah the Mighty and Majestic has forbidden. Rusing to make a forbidden thing permissible does not make it permissible, just as rusing to avoid an obligatory thing does not drop it. Even if people give you a fatwa (a scholarly legal ruling) and you give them one, it is forbidden. I will give you an example, my brother: Which of these ruses is closer to the forbidden thing, or the ruse of the Jews who were forbidden fat, so they melted it and sold the lard and ate its price? There is no doubt that this ruse, which confused some scholars so they issued a fatwa permitting it, is closer to being forbidden than the ruse of the Jews. Yes, if it were the case that the bank owned the car, it was in its possession, and in its warehouse it was worth fifty in cash, and a person came and said: I want to take it for sixty deferred. And the debt does not increase by the delay in payment, then this is a valid sale. But the scholars differed on whether the person seeking the car does not want the car itself, but only its value, such that if he buys it, he sells it immediately and takes the value. This is the issue of tawarruq (a commodity sale used to obtain cash). The scholars, may Allah have mercy on them, differed on it, and the Shaykh al-Islam, may Allah have mercy on him, forbade it strictly and was severe in it - I mean Shaykh al-Islam Ibn Taymiyyah - and he is sufficient in knowledge, jurisprudence, and scrupulousness. He said: This is forbidden. And he said: O, glory to Allah! How does the forbidden riba, which is in the Book and the Sunnah, and for which there is a warning that has not come for any sin other than shirk (associating partners with Allah), how does it become lawful by this ruse? He considers tawarruq to be forbidden. And that it is from 'inah (a buy-back sale used to disguise a loan), and he mentioned it explicitly from Imam Ahmad, may Allah have mercy on him.
As for our issue that the questioner pointed to, the bank does not own it. But you came to it and said: I choose such-and-such car in such-and-such dealership. It said: Go see how much it is worth, then come back to me. Then I buy it from the dealership for fifty and sell it to you for sixty at a deferred time. So no one who reflects on it with true reflection doubts that it is forbidden. Yes.
The questioner : O Shaykh, if you permit us, there is a question before the time ends.
The Shaykh : Very well.