Fatwa #64527 August 2000Pakistan

Please advise if it is acceptable to approach a conventional bank to effect an asset based transaction where the interest rate and the period of re-payment is fixed?

Answer

If the conventional bank offers a loan on interest, it is not permissible
even if the interest rate is fixed. The Qur'aan expressly prohibits every
form of interest.

However, if the bank proposes to purchase the asset and resell it to the
client on a fixed profit, then it will be permissible. The addition on the
purchase amount will be a profit on sales and not interest.

and Allah Ta'ala Knows Best

Mufti Ebrahim Desai

#44513Is it permissible to take out an interest only fixed rate mortgage?
#13812I have approached the bank and explained that I want to buy a house with a loan from them that complies with Islamic Law and Principles. I have asked that they buy the house for me, and agree to re-sell to me with an agreed profit,
#17859I have 1000 us dollars in cash. i have a brother who wants to buy them. the current rate is 10 rands to a dollar. he says he will not be able to pay me cash. i offered to sell him the dollars at 15 rands to the dollar and give him 6 months to pay. all is fixed and agreed. is this permissible.
#17049I bought a car through al-ijarah thuma al-bai'(AITAB), which mean hire-purchase. The bank claim it is Islamic concept. The concept is I choose a car from the car dealer, then I approach bank.
#13526I have approached the bank and explained that I want to buy a house with a loan from them that complies with Islamic Law and Principles.
#6103A builder friend of mine told me that people are benefiting from him as they put their money in his business and he pay them fix rate of 2percent per month
#14950I would like to know whether is it permissible to pay this interest to bank using the dividend/return on my investment that I had already received?
#20412Paying transaction fee with the interest received from the ICICI bank

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