Mufti OnlineMufti Online — Madrasah Ta'leemuddeen

Taking a profit against a loan

English
Business and DealingsInterest and Gambling

Question

Is Islamic banking across GCC correct? they are referring to profit rate for car loan etc. Is this the same as interest? Am I safe to purchase a car through Islamic banking profit rate that they are referring. Bank says it is as per Shari'ah. Please help to sort this doubt as I am about to purchase a car and since I cannot afford full payment, I am preferring Islamic banking. Will I be in danger?

Answer

Taking a profit against a loan is interest.

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

Answered by
Mufti Ebrahim Salejee (Isipingo Beach)
View original Ask Mufti Online directly

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, ask the issuing Darul Ifta directly.