I want to buy a car from Suzuki through a so-called Islamic bank on installments.

However, the car price is 11 lakh but I have to pay approx 14 lakh in 5 year installments.

Is this interest or profit? Is it halal or haram?

  • It is one of the most hard questions in the modern days. And you need to ask fatwa site about it. However the best I can tell you that if the bank has ownership of the car before you buy it. Then there is no problem in this. Which means if a bank made an offer on Suzuki car and he already bought number of them in bank in his custody. It is allowed for the bank to sell the car again with higher price in installments. Commented Jun 3, 2017 at 2:20

1 Answer 1


It wouldn't be much of an Islamic bank if it were haram. There are ways to make it halal, and you can contact the bank to ask for details and some Islamic banks have fatawa declaring it halal.

The usual process is described by an AboutIslam fatwa (about houses):

Islamic banks buy the properties for cash and sell them for a higher price on installments. This is permissible and called murabahah.

Other fatawa which explain this are IslamWeb and Islam Q&A. However, another Islam Q&A discourages this when unnecessary (while acknowledging its permissibility).

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