Buying properties on interest loans : financing a car, a house

Fatawa Question

Assalamu Alaykum, Dear Dr. Kahf, I am sure you have addressed this issue many times before. I did some research online to finally find a name that can help me. I have 2 questions. 1-My husband and I would like to buy a new car, but we are confused. We always steer away from anything that has a % next to it, as small as it could be because that is our interpretation, Interest = Haram. Our knowledge in financing is very limited as you may notice. All the previous cars we bought had 0 % APR. The car we want for our family (Honda), is from a dealer that has no 0 interest offers. What should we do ? Is it permissible ? 2-We also live in a rental townhouse and what we pay for rent, can definitely be paid as a mortgage. People are telling us “you are stupid, you are throwing money out the window", but we don't want to do Maasiya. We'd rather make financially unsound decisions than disobey Allah. What's your intake with regards to Islamic banks ? Can u please help ? Jazakoum Allahu khayran, May Allah protect you and your family. May he shower you with his bounties. Ameen Assalamu Alaykum, Sister Dalila,

Fatwa

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Publication Date

2012-12-04

Main Subjects

Economics & Business Administration
Financial and Accounting Sciences
Islamic Studies

Topics

• Islamic jurisprudence
• Housing
• Financing
• Automobiles
• Usury

No. of Pages

1

Data Type

Fatawa

Language

English

Record ID

BIM-729866

• APA
• MLA
• AMA