Question:
He owns a motorcycle shop. A bike costs 6 lakhs. The buyer pays 3 lakhs upfront and asks to register the remaining through a leasing company (finance company). Is this permissible?
Answer:
This is not just about motorcycles. Anyone selling expensive goods faces this issue. If someone buys a bike worth 5 lakhs, gives 3 lakhs, and asks for EMI on the rest — who gives EMI? A finance company that charges interest.
You, as the shop owner, receive full payment from the finance company, and the buyer becomes debtor to the finance company with interest. The problem arises when the shop owner recommends or facilitates the interest contract.
If the buyer independently goes to the finance company and arranges a loan, and the finance company pays you in full, and you have no involvement in recommending or signing for the interest — then you are not directly assisting in Riba.
But if you recommend him, sign papers, and connect him — you are assisting in interest. That is not permissible. So, either:
- Do cash business only, or
- Let the buyer independently arrange financing without your involvement.
If your entire business depends on facilitating interest contracts, then you must reconsider the business model.