Mufti Online — Madrasah Ta'leemuddeen

House or car finance through an Islamic bank

· 6 Muharram 1447 AH1 min readEnglish

Question

Is it permissible to finance a car or a house through Islamic bank if the period of payment is fixed (e.g. 5 years) but amount of payment is fixed only for 12 months after which it is reviewed and adjusted for inflation?

Answer

The manner in which Islamic banks operate does not conform to Shariah. Hence, there are many laws of Shariah that are violated in the process of transacting. Therefore, we do not sanction the dealings of any Islamic bank.

And Allah Ta'ala (الله تعالى) knows best.

Answered by
Mufti Zakaria Makada
Checked & approved by
Mufti Ebrahim Salejee (Isipingo Beach)
View original Compare with other Darul Iftas
Questions about this ruling, answered only from the archive with sources.

Where scholars differ, it’s safer to take the more cautious view.

Fatawa SA is an independent, read-only index of fatawa already published by Mufti Online — Madrasah Ta'leemuddeen. It is not a fatwa service. For your own situation, please ask a Mufti. Report an issue

For corrections or mistakes, please email us at fatawasa786@gmail.com.

Source: Mufti Online — Madrasah Ta'leemuddeen — https://muftionline.co.za/node/35979
Fatawa SA: https://fatawa.co.za/fatwa/muftionline-35979

People also ask

Is Islamic banking halaal?

“We do not find the workings and operations of Islamic banks to be consistent with the principles of shariah in regard to commerce and trade. Hence, we feel that the manner in which Islamic banks operate is not shariah compliant,…”

Mufti Online · 92 fatawa from 5 Darul Iftas on this

What the Darul Iftas say
Is buying a car on finance permissible?

“The loan which the bank provides the client with to purchase a vehicle or property is an interest-bearing loan. Hence, it is not permissible for one to purchase a vehicle or property through the bank, regardless of whether the…”

Mufti Online · 70 fatawa from 5 Darul Iftas on this

What the Darul Iftas say

Related fatawa