Transactions of Islamic banks : auto financing through Murabahah

Fatawa Question

I want to buy a car and I don’t have the money to finance it. I want to get a loan through Dubai Islamic Bank. Can you advice me whether the method they are following is of Shari’ah compliant. i.e. I first go to a dealer and select the car of my choice and then the I tell the bank the car I want. The bank will buy the car and sell it to me at 3.99 % profit rate per annum. If I want to pay it over five year period then they’ll multiply the profit rate for 5 years and arrive at the total price which I have to pay in 60 monthly installments. Is this is a Shari’ah compliant method ? Jazakallhhairan.

Fatwa

Click hereto view more

Publication Date

2006-08-24

Main Subjects

Economics & Business Administration
Islamic Studies

No. of Pages

1

Data Type

Fatawa

Language

English

Record ID

BIM-788446

• APA
• MLA
• AMA