Interest loans to buy a car : car loan to benefit from companys refund

Fatawa Question

I work in a company for 15 years and I always have the option of getting a loan from the bank that the company deals with but I know it is Haram and, therefore, have never taken a loan, Alhamdo Lelah. Now, I reached, Alhamdo Lelah, a position which requires me to represent the company and will be repaid, on monthly basis, for my car expenses during the month, against proper documentation. This means that the company will pay me X percentage of the monthly cost and price of a new car. But to pay me this X percentage of the price of the car on monthly basis, the company will ask the bank to give me a loan to be paid back to the bank (plus the interest) over 40 months by me. I, then, have to show to the company, every month, the bank statement showing the actual monthly amount deducted (loan+interest) and they will give me the X percentage. In summary, I get a loan Y, that will be paid over 40 months, the bank calculates the monthly payment and starts to deduct from my account, every month, the loan plus interest, I show the company the deducted amount and they re-pay X % of that. Shall I go ahead and get the loan as it is the only allowed way to get the X % contribution of the company to the car price ?

Fatwa

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Publication Date

2002-06-15

Main Subjects

Financial and Accounting Sciences
Islamic Studies

Topics

• Islamic jurisprudence
• Financing
• Purchasing
• Automobiles
• Usury

No. of Pages

2

Data Type

Fatawa

Language

English

Record ID

BIM-725796

• APA
• MLA
• AMA