Wednesday 18 Sha‘ban 1445 - 28 February 2024

Buying with funds from a savings scheme when he is one of the members of the scheme


We have a fund whereby each member gives an initial payment (500 riyaals) then makes monthly payments (100 riyaals). After a while, the fund grew and the people who were in charge of it were able to buy cars with cash and sell them by monthly instalments for a higher price. Some of the members of the savings scheme and other people bought the cars.
The first question is: what is the ruling on people who bought these cars in the manner described above, who were also members of the savings scheme?
The second question is: what is the ruling on a person who bought a car in the manner described above, who was a member of the savings scheme but was unaware (of the connection between the scheme and these cars)? If the answer is that it is not permissible, whether he has paid in full or is still paying?


Praise be to Allah.

If this is based on the condition that one of the partners in this scheme can buy one of the group’s cars, then this is not permissible, because this comes under the heading of “two transactions in one”, since it involves partnership (being a partner in the scheme) and purchasing (buying the car). But if this is not a condition that was previously laid down, then there is nothing wrong with it.

 And Allaah is the source of strength. May Allaah bless our Prophet Muhammad and his family and companions, and grant them peace.

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Source: Standing Committee on Academic Research and Issuing Fatwas, 13/309