Thanks for your prompt answer. I have not chacked, but I am almost 100% sure that all conventional lariba banks have this penalty interest for late paymnts. So this concludes it. May Allah award you

Abdullah

May Allah reward you for putting down this article. It has been bothering me for so long. I have always had problem with answers from schollars which are always general and not detailed enough. Having in mind the differences in opinion between different scholars, I would like to ask for your help in defining the the following offers as halal or haram:

Case 1.
Company sells retail goods (electronics) with the option of 0% financing to be payed in installments. The product (i.e digital camera) has defined price, which when payed in installments is exactly split to agreed number of installments(6,12,24), no additional expence. All is done by signing a loan with a regular riba bank, partner of the company, to the given amount, returning in total the amount on the receipt. However, when paying in cash right away, there is a 10% discount to the stated price, and there is always additional charge(interest) for late pyments.

Case 2.
The product has defined price, which is same when payed in cash and installments, but only up to 6 or 12 months. In this case it is exactly split to agreed number of installments, no additional expence. If however the period agreed is longer there is clearly stated 4,5% interest increase in the price. In both cases it is done by signing a loan with a regular riba bank, partner of the company, to the given amount, and there is additional charge(interest) for late pyments .

The Case 1. is mostly used in East-European countries, while the Case 2. is used in West-Europe. My opinion is that the Case 2. – up to 6-month installments option is the only one close to be halal. The only confusing part for me is the signing of the loan contract with the partner bank and additional charge for late payment. Could you please, may Allah reward you for it, help me find the direct and concrete answer to my two Cases. They are so widely spread and affect all Muslims living in Europe, and yet I have not seen a single concrete answer to them, yet.

i would like to get a lease car for two years, and my intention not to own it, do you have Fatwa regarding this issue, from authenticated Olmaa like al-albani ,,,

jazak allah kahir,

I plan to buy a van. What is your recommendation. I would like to buy it on installments. Do you recommend a New or semi new?

Jazakum Allah Khair

Hakem

However, to be fair, there is still a second opinion by sheikh albani that is more conservative that any such transaction still constitutes riba.

Please be extremely careful when making posts like these. You may be unintentionally misleading people if you don’t have a full grasp of the discussion at hand.

Again, the key point is that the devil is in the details i.e. what counts is the minor details…. Best to check the particulars in that case with a sheikh

So long as its a fixed final amount that you pay in total.

Whereas some halal mortgage its not always the case. The price you see is not the price you pay.

Wassalamualikum