FNB Vehicle Finance Islamic Product

· 16 Dhuʻl-Qiʻdah 1437 AH1 min readFatwa 36487English

Question

Aslm

Durban South Toyota has deal, R30000 deposit, R4000 monthly for 72 months, done in conjunction with FNB Islamic Finance. Is such a deal permissable?

Jazakallah

Slmz

Answer

In the Name of Allah, the Most Gracious, the Most Merciful.

As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuhu

Kindly submit the following information in order for us to issue a ruling:

1. FNB terms and conditions

2. Insurance facility structure – priced with instalment or externally

And Allah Ta’āla Knows Best

Ismail Desai,

Darul Iftaa

Checked and Approved with the following comments from Mufti Ebrahim Desai:

While we have devised the Ijarah contract of FNB Islamic Finance during its inception, and supervised it until being on the Shariah Board of FNB, we do not know if the contract has changed. The contract devised by us included the insurance amount in the actual instalments. A separate insurance contract out of the monthly instalments is not Shariah Compliant.

Answered by
Ismail Desai
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