Is Murabaha permissible?
Q: As salaamu alaikum,
Will it be permissible to take a loan from the MCU? You are required to pay back an additional fee monthly that they refer to as Murabaha. Is this permissible?
A: Wa Alaikum As Salaam,
Yes, it is permissible to do the transaction. Murabaha is not a loan, it is a sale. As such, the additional amount is a mark up and not interest.
And Allah Knows Best,
Mufti Waseem Khan.
11/6/2015.