Impermissible to cooperate with a Riba-based bank
Fatwa No: 214177


dear brother, we are solar energy company in pakistan. can we sell our product to a bank and then bank further finance on installment to his customer. Selling and marketing is on bank and bank will charge margin for its services and leasing. We will not involve in financing, we will install solar at customer home and bank will make us full payment one time. Please inform if this arrangement is permissible in islam. Thanks,


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, sallallaahu ‘alayhi wa sallam, is His Slave and Messenger.

This transaction apparently implies a cooperation with the bank in providing the products which it markets to its customers. The condition of the bank should be considered well, if it is a Riba-based bank, then it is not permissible to cooperate with it for Allaah The Almighty says (what means): {But do not cooperate in sin and aggression.}[Quran 5:2]

However, if the bank is Islamic and its financing transactions are lawful, then there is nothing wrong with dealing with it.

Allaah Knows best.

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