An Nahl Finance
QUESTION:
Please advise if it is permissible to finance a vehicle via An-Nahl Finance. They describe their financing model as follows:
FINANCE
The finance is not a loan given on interest, it is a sale of commodities (motor vehicle, stock, equipment, property, etc.) for a deferred price which includes an agreed profit on cost.
The price is to be repaid in instalments over an agreed period. The terms of the contract cannot be changed over the agreed period.
AN-NAHL buys stock/assets and sells it to the applicant at an agreed mark-up, after the application has been approved. The mark-up must be calculated on the full purchase price of the article.
The client cannot use the finance to fund its business’ overhead expenses, or to pay off a debt.
AN-NAHL makes payment directly to the supplier. Delivery of goods/articles can only take place after payment to supplier has been made.
MOTOR VEHICLE FINANCE
AN-NAHL will purchase the motor vehicle of your choice and sell it to you at a price which includes a profit. The price is repaid in instalments over an agreed period. No changes can be made during the agreed period. Ownership of the vehicle passes onto the client upon the conclusion of finance.
Your choice of payment period can suit your budget and stretch over a 48-month period. Repayments are made by EFT/ stop order.
A deposit of 20% is required after the agreed mark-up has been added to the purchase price. You may increase your initial deposit by as much as you like, thereby reducing your fixed monthly repayment.
ANSWER:
Our Darul Ifta does not approve of financial insitutions, be it conventional or ‘Islamic’, due to many grey areas. The explanation cited in the query is merely in theory. Whether it is being applied in the manner stated above, is not certain. We will have to scrutinize and thoroughly go through each clause in the blue print/contracts before we reach a conclusion.
ALLAH TA’ALA ALONE IN HIS INFINITE KNOWLEDGE KNOWS BEST!
ANSWERED BY:
Mufti Abdul Kader Fazlani
Date: 09 Rabi-ul-Aakhir 1447 / 02 October 2025
CHECKED AND APPROVED BY:
Mufti Yacoob Vally Saheb