Question: 

Abdullah person wants
to buy a car but does not have the cash. He can however pay monthly
installments.  Yusuf is prepared to help him , but also wants to
"invest" or benefit , not only help. If he loans him the money and
receives installments to the value of more than the loan , then that will be
interest. Is there a way in which such a transaction could be valid? 

Answer: 

Yusuf should buy the car directly from the supplier and take full ownership of it. He may then sell the vehicle to Abdullah at a profit in fixed installments over a fixed period of time. For example, Ahmed buys the car for R10 000.00. He then sells it to Abdullah for R12 000.00 in fixed installments of R1000.00 per month over 12 months. By adopting the above procedure the transaction will be considered to be Shariah compliant.

And Allah knows best!

ANSWERED BY: Mufti Mohammed Desai 

CHECKED AND APPROVED BY: Mufti Muhammed Saeed Motara Saheb D.B 

Date: 10 Rajab 1441 

English Date: 06 March 2020