Title: Helping some poor by providing them e-rickshaw

Question: I want to help some poor Muslim persons in purchase of e-Rickshaw. I want to provide the initial payment (down payment) and the balance through bank finance. The Automobile dealer is ready to co-operate in providing the e-rickshaw at a discounted price and low rate of interest and low down payment. Since it is employment related issue and there is no other financing facility is available. Secondly if we give them (the needy people) the rickshaw free of cost then they will not be very serious in earning. Please guide us whether we can help people through bank financing.

Answer ID: 65519Posted on: Aug 31, 2020

Bismillah hir-Rahman nir-Rahim !

(Fatwa: 692/577/D=09/1437)

In case the bank finances it you will have to pay interest and both paying and taking interest is haram. Thus it is not lawful to adopt this method to help.

Yes, if the bank buys e-rickshaws and includes its profit in the price and gives you in installments then it shall be right to buy them on total amount and pay it in installments provided all the installments are cleared in due times and no interest is levied due to delay. Or the auto mobile dealer finances it himself and he includes the extra amount in original amount (whether it is as interest or addition in price) and fixes it in installments then it shall be lawful to buy rickshaws on total amount and pay it in installments. But it is necessary that the total amount is known and fixed at the time of having the deal.