Mu' meneen Brothers and Sisters,

As Salaam Aleikum wa Rahmatullahi wa Barakatuh. (May Allah's Peace, Mercy and Blessings be upon all of you)

 

One of our brothers/sisters has asked this question:

Dear Brothers,
Assalam-o-Alikum,

Anaybody knows the fact of "Insatallment on the eye of Islam" if someone knows please give me complete information in the light of "QURAN" "and HADIDTH" .

I am very much confused somebody said its okey somebosy said its "HARAM", one of my friend want to buy on car and he want to know the fact.

I hope i will get real information on insatallment, so that my frined can avail complete " RAHNUMAYEE" and save his "IMAN"

I am from Saudi Arabia.

 

JAzakmulla khaurumm

 

(There may be some grammatical and spelling errors in the above statement. The forum does not change anything from questions, comments and statements received from our readers for circulation in confidentiality.)

 

Answer:

 

Interest riba loan

In the name of Allah, We praise Him, seek His help and ask for His forgiveness. Whoever Allah guides none can misguide, and whoever He allows to fall astray, none can guide them aright. We bear witness that there is none worthy of worship but Allah Alone, and we bear witness that Muhammad (saws) is His slave-servant and the seal of His Messengers.

 

Dear and beloved brother in Islam, it is neither the concept of taking loans, nor the concept of paying the loan in installments which is unlawful in Shariah; what is absolutely and categorically prohibited in Shariah is if the loan or the installment has an interest or ‘riba’ element attached to it.

 

Allah says in the Holy Quran Chapter 2 Surah Baqarah verse 274-276:

But those who devour ‘riba’ become like the one whom Shaitaan has bewitched and maddened by his touch.   They have been condemned to this condition because they say,  “Trade is just like ‘riba”,  whereas Allah has made trade halaal and ‘riba’ haraam.   Henceforth,  if one abstains from taking ‘riba’ after receiving this admonition from his Lord,  no legal action shall be taken against him regarding the ‘riba’ he had devoured before:  his case shall ultimately go to Allah.   But if one repeats the same crime even after this,  he shall go to Hell,  where he shall abide for ever!   Allah deprives ‘riba’ of all blessing and develops charity, and Allah does not like an ungrateful,  sinful person.

 

Allah says further in the Holy Quran Chapter 2 Surah Baqarah verse 278:

O Believers!,  fear Allah and give up that ‘riba’ which is still due to you,  if you are true believers.   But if you do not do so,  then you are warned of the declaration of war against you by Allah and His Messenger!

 

Al-Tirmidhi Hadith 2829        Narrated by Ali ibn AbuTalib

Ali said he heard Allah's Messenger (saws) invoke the curse of Allah on those who took usury, those who paid it, those who recorded it, and those who refused to give sadaqah.

 

If the ‘car-financing’ is done through a conventional interest-based bank or financial institution, because the transaction has an involvement of paying interest when financing the purchase of the car (or any other product), then indeed such a transaction would be absolutely unlawful for the believers who sincerely fear Allah and the Last Day.

 

But if the car is financed without the element of interest, or through a Shariah compliant non-interest based Islamic financial institution, then such a transaction would be lawful in the Sight of Allah Subhanah.

 

Thus beloved brother, it is not the concept of car-finance or the payment in installments itself, but the interest element in the transaction which determines its permissibility or prohibition.

 

Whatever written of Truth and benefit is only due to Allah’s Assistance and Guidance, and whatever of error is of me alone.  Allah Alone Knows Best and He is the Only Source of Strength.

 

Your brother and well wisher in Islam,

 

 

Burhan