Question:
Is it permissible for a person to operate a car rental business where they lease cars from a company and rent them out to customers, without charging interest?
Answer:
الجـواب حامـدا ومصليـا
This business is permissible (halal) under the following conditions:
1. No Riba (Interest): The leasing agreement with the company must not involve riba (interest). In an ijarah (leasing) contract, payment is in exchange for the usage and benefit of the item, not ownership, and such transactions typically do not involve riba.
2. Specified Time Period and Rental Amount: The time period and rental amount for both the lease and rental agreements must be clearly specified, as ambiguity in these matters is not allowed in Shari’ah.
If these conditions are met, the car rental business is halal.
And Allah knows best.
Issued by: Mawlana Hamoon Masudi
Approved by: Mufti Manzoor Ahmad
References:
1. Al-Kāsānī, Badā’i‘ al-Ṣanā’i‘
2. Al-Marghīnānī, Al-Hidāyah
3. Ibn Nujaym, Al-Baḥr al-Rā’iq
4. Al-Mawṣilī, Al-Ikhtiyār li-Taʿlīl al-Mukhtār
5. Ibn ʿĀbidīn, Radd al-Muḥtār
