[Question] Leasing Through Bank In Islam??

**TKhan** · 09-28-2007

First of all sorry if I've posted in wrong category but I've tried to be accurate. Move it to the correct folder if this is in Wrong section.

Recently I decided to get a new car through bank but I'm confused and have some questions that I want to clarify:

Banks offer you whole amount (The Price of Car) to purchase a car and take like 10% in advance and rest in monthly installments. And they charge you extra amount as they are providing you services. My question is this Interest?? If yes, then why?? and if not then why not??

I'm very desperate to know the answer of this question because I don't want to involve in it if this is Interest. I'm willing to get the answer of this question ASAP and I hope members here will help me.

Allah Hafiz

**TKhan** · 09-30-2007

No one knows ??? I need to know this asap

**snakelegs** · 10-05-2007

bump.
anyone know?

**NoName55** · 10-05-2007

funniest thread yet!

what does it say in th leaflet or the application you filled in? ask the Bank what they call the charges.

ROFL

unless ofcourse you decide to lease it for a set number of years (from a garage) then give the car back (owing nothing) then it will be called leasing fees or car rental.

My question is this Interest?? If yes, then why?? and if not then why not??

Blasted hilarious!

where does it say that we have a Shariah Banking expert in residence?

this and above link turned up in Google:
Shariah Rulings in Islamic banking and insurance

Note: the links may contain all nonsense for all I know (as I have not gone through the site to read them yet)

**nocturne** · 10-13-2007

not sure where you are from brother. But, this is want happens in Singapore as well.

So let's pay the car costs $50,000 and u take 10% of that which will be like a total of $55,000. they will probably charge u a monthly interest for that sum (extra charges as u put it) so u will end up probably paying like additional $5k or more depending on the length of your "lease".

*I am no expert on Shariah law,but there is no bank in the world that does not charge interest for loans (unless its a islamic bank)

**Seeker_of_truth** · 10-15-2007

Anything added to the loan is interest. So for example you go to "SO CALLED" Islamic bank they give you a loan and charge a "fee" that is still considered RIBA.