Q 1: I am a Muslim working in the freight business. I wish to buy a truck that costs 30 million Cote-d'Ivoire Francs but I only have 5 million Francs. I called one of the truck companies and they told me the following: the company will get me a truck for 30 million Francs that I will pay in installments with an interest imposed by the company. Is it permissible to go on with this transaction or offer?

A: Taking out a loan from the bank to be paid by the borrower at a certain time with an addition contracted by the bank and the borrower is Haram (prohibited) according to evidence from the Qur'an, the Sunnah, and Ijma` (consensus of scholars). Calling it a loan does not change the fact that it is a Riba (usurious) transaction. This is similar to the Riba that prevailed during the pre-Islamic time of ignorance which combined Riba Al-Fadl (usury of excess, selling an item for another of the same type, on the spot, but in excess) and Riba Al-Nasi'ah (usury of delay, conditional excess for delay of payment).However, if the company buys the truck at its own expense and after receiving the truck, it sells it to you for a fixed instant or deferred price to a certain time, there is no harm in that. Allah (Glorified be He) says: O you who believe! When you contract a debt for a fixed period, write it down. Allah (Exalted be He) also says: (Part No. 13; Page No. 413)  ...whereas Allâh has permitted trading and forbidden Ribâ (usury). May Allah grant us success. May peace and blessings be upon our Prophet Muhammad, his Family, and Companions.