Purchasing Cars Through Commercial Bank Loans
Respected scholars, as-salamu `alaykum. In Australia, most members of the Muslim community are purchasing cars and homes through commercial bank loans and mortgages. This is justified in two ways: First, one has no option in a Western country that does not have Islamic banking - and hence you need to borrow to be able to acquire a car and a home. Second, the prohibited interest refers to excessive interest over and above an acceptable rate (usurious rate). Interest at or below the average is acceptable. Please comment on the above, especially on the notion of interest and riba in Islam.also, please comment on what riba encompasses (interest, excessive profiteering, etc). Jazakum Allahu khayran.
