Car leasing contract that involves refundable interest
Fatwa No: 338287

Question

Assalaamu alaykum. I have a question regarding car leasing. I have a business and would want to lease a car, but apparently there is interest in the lease. I live in belgium. The Belgian State gives 100% back on your expenses for your business, also the interest. Is it haram to lease with interest if I get it a 100 % refund?

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  sallallaahu  `alayhi  wa  sallam ( may  Allaah exalt his mention ) is His slave and Messenger. 

You did not clarify to us what the interest in the lease transaction is. In any case, if we assume that the leasing contract really includes a forbidden usurious condition, such as if it stipulates to pay a fine in case of a delay in paying the fees, then it is a forbidden contract, and it is not permissible to conduct it, even if the state would give the person back what he had spent on the transaction.

This is because it is not permissible to approve a forbidden contract or to conduct it in principle unless there is a necessity or dire need that is considered as a necessity.

Some scholars, when explaining the extent of necessity, said that this is when a situation of danger happens to the person, or a great hardship, to an extent that he fears harm to his life or part of his body or harm to his honor or mind or money and its related matters; in which case it becomes obligatory or permissible to commit what is forbidden or to abandon an obligation or delay it from its due time as a way of warding the harm off himself according to his predominant belief and within Sharee'ah restrictions.”

Allaah knows best.

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