Ruling on purchasing goods at a deferred price through banks
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Question: From Abdulaziz ibn Abdullah ibn Baz, to the honorable brother / A. Sh. Sh, may Allah preserve him
Peace be upon you, and Allah’s mercy and blessings, and after that:
With reference to your inquiry, registered with the Department of Scientific Research and Ifta under number: 2912, dated 24/7/1407 AH, in which you ask about: the ruling on purchasing a car or other item at a deferred price through a third-party intermediary—such as a bank—where the intermediary is the one who benefits from the increase over the cash price.
Answer: I inform you that if the bank purchases the car from its owner and then sells it to you after it has bought and taken possession of it, there is no harm in that, even if it is for more than what it paid for it. However, if the one selling it to you is the original owner, and the bank pays him the value, and the bank takes a profit in return for that, it is not permissible; because it is a sale of dirhams for dirhams, and it is forbidden because it is riba (usury or interest). The Permanent Committee for Scholarly Research and Ifta has previously issued fatwas regarding the ruling on sales with deferred payment, and on the ruling on loans from banks with interest; we are attaching copies of them for you, and they are sufficient, if Allah wills.
May Allah guide everyone to what brings Him pleasure, and peace be upon you, and Allah’s mercy and blessings.
Peace be upon you, and Allah’s mercy and blessings, and after that:
With reference to your inquiry, registered with the Department of Scientific Research and Ifta under number: 2912, dated 24/7/1407 AH, in which you ask about: the ruling on purchasing a car or other item at a deferred price through a third-party intermediary—such as a bank—where the intermediary is the one who benefits from the increase over the cash price.
Answer: I inform you that if the bank purchases the car from its owner and then sells it to you after it has bought and taken possession of it, there is no harm in that, even if it is for more than what it paid for it. However, if the one selling it to you is the original owner, and the bank pays him the value, and the bank takes a profit in return for that, it is not permissible; because it is a sale of dirhams for dirhams, and it is forbidden because it is riba (usury or interest). The Permanent Committee for Scholarly Research and Ifta has previously issued fatwas regarding the ruling on sales with deferred payment, and on the ruling on loans from banks with interest; we are attaching copies of them for you, and they are sufficient, if Allah wills.
May Allah guide everyone to what brings Him pleasure, and peace be upon you, and Allah’s mercy and blessings.
Source
binbaz.org.sa
The Arabic text is copied verbatim from the original source, without any edits.