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Fatwa CenterBought a car through a bank loan
Question
I am living in Norway, I have buy a car for taxi work. This car cost 491000 Norwegian Kroner. I have pay 190000 Kroner. The rest of the money I will pay in 5 years, every month. I didn't discuss with the bank how much I will pay every month they send me invoice. I have calculated the invoice for 5 years and I am paying 50000 Kroner and maybe more. Because I didn't discuss with them how much I will pay every month they just send me invoice and I pay them every month. If that happened is that Ribaa?
Answer
All perfect praise be to Allaah, The Lord of the Worlds. I testify that there is none worthy of worship except Allaah, and that Muhammad 
is His slave and Messenger.
If you bought the car through the bank then it was an obligation on you to know the reality of the transaction and how the bank bought the car for you. That is because non-Islamic banks finance the car for the customer and increase the price for him without the bank actually buying and possessing the car and then selling it to him. The reality of this transaction is a loan with interest. The bank pays the price of the car for the customer and then obliges the customer to pay back by instalments with an increase in the price because of the delay in payment, and this is nothing but usury and interest.
So whoever has carried out this transaction has to sincerely repent to Allaah as he has indeed committed one of the great major sins by which he deserves Allaah's curse and anger.
For more benefit about getting a loan with interest in order to buy goods, please refer to Fataawa 88400 and 88238.
Allaah Knows best.
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