Islamic finance contracts and instruments practiced in Islamic banks : [Murabahah sales : 2]

Fatawa Question

Dear Dr. Monzer Assalamualaykumwrwb. Alhamdulillah, there is a high demand for our new schemes-ticket and vehicle financing and challenges are coming and I need your advice on the following : 1. A member / client wants to purchase a car which he can finance partly. The cost price of the car is $ 20,000, the member /client has $ 5000 and he needs a part financing of $ 15,000 from AL Barakah on Murabahah. Is it allowed to finance the member/client in this Murabahah transaction ? 2. A member / client wants to purchase a car from a vendor costing $ 20,000. He approaches AL Barakah to finance the Murabahah. But Al Barakah has a ceiling and can finance only up to $ 15,000. The member / client does not have cash ($ 5,000) and negotiates with the vendor to pay the $ 5,000 in installments to which the vendor agrees. Can we enter into such a transaction ? Jazak Allah for your usual cooperation and advice. Best Regards, Wassalam, Br. Raffick

Fatwa

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Publication Date

2008-06-23

Main Subjects

Financial and Accounting Sciences
Islamic Studies

Topics

• Islamic jurisprudence
• Financing
• Purchasing
• Automobiles
• Resale on profit

No. of Pages

1

Data Type

Fatawa

Language

English

Record ID

BIM-730659

• APA
• MLA
• AMA