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Is It Riba To Purchase An Item On Variable Interest Rate Loan Or No Insurance
A loan for a house, car, or any other usable product may be considered Riba if it involves a variable interest rate or if the purchased item is not covered by loss insurance. With a variable interest rate loan, the final cost of the item cannot be determined at the time of purchase. Additionally, purchasing without loss insurance could eventually force the buyer to find additional funds to pay off the remaining loan balance if the item is destroyed.
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Is It Riba To Purchase An Item On Variable Interest Rate Loan Or No Insurance
updated 8 months, 2 weeks ago
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If it is related to mortgage, then it is not actually loan, but sale and purchase agreement. Variable interest rate doesn’t affect the nature of the transaction. For details you can see our discussions on this forum and videos of our scholars on YouTube.
The element of insurance is additional and doesn’t affect the nature of transaction, either.
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