When purchasing a product,is it permissible to accept a loan from a third party at a value higher that the principle amount ?
Question
Asaw, Respected Mufti saheb, my question is best explained by an example.Person A Wishes to buy a vehicle from B for R100,000, but he does not have enough cash, so person C offers to purchase this vehicle from B for R100,000 and sell it back to A at R3000 per month over 3 years ie a total of R108,000 (R8,000 over the original amount).However if person A did not want the vehicle at all then person C would not have purchased it at all. Is this transaction permissible?
Answer
Respected Brother-in-Islam
Assalaamu Alaykum Wa Rahmatullaahi Wa Barakaatuhu
The purchase and sale agreements between B & C, C & A are valid.
However, C undertakes a risk of purchasing the vehicle from B to sell it to A as A may decline to purchase the vehicle from C.
and Allah Ta'ala Knows Best
Mufti Ebrahim Desai
FATWA DEPT.
- Answered by
- Mufti Ebrahim Desai
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