An Islamic motorcycle loan is defined by a halal funding approved by an Islamic bank or a halal lender for a Muslim who is about to purchase a motorbike and wishes to follow the rules of Islamic Finance.

An Islamic motorcycle loan is used by individuals and business people to cover their needs in terms of mobility by buying a two-wheeled vehicle that is powered by a motor when there is not cash at the disposal through any savings, using halal financing.

A halal motorcycle funding is useful for a Muslim motorcyclist who cannot afford to drive a car and who limits his or her expectations to a motorbike for a better mobility by borrowing halal money.

Funding a motorcycle on Sharia basis means that an Islamic bank or halal lender purchases a motorcycle first and rent it to the driver and borrower until he or she has repaid the full amount of the price of the vehicle added with a profit margin of the lender.

A Halal pawnshop to be compliant with sharia, in addition of not charging interest should only accept goods that have an economic value, be on private ownership and make sure that such goods that are not haram (forbidden), the assets can consist of a plot of land, a vehicle or a house.

Islamic pawning protects a Muslim borrower in case he fails to repay the debt, given that the Muslim pawnbroker will have to sell the goods in an auction to compensate the debt, in case the achieved sale price exceeds the loan amount, the profit will have to either shared with the depositor or fully transferred to him.


Halal pawning is in conclusion permissible under the following conditions:

  • The loan should be equal to the value of the collateral.
  • The pawnbroker should not exploit the financial precarity of a Muslim borrower by charging interests (Riba) but probably asks the depositor to share his profits out of the borrowed money where he made himself money if the transaction has been Sharia compliant. -
  • The assets initial owner is responsible for the cost of maintenance.
  • Change of ownership takes place only if the borrower is not able to repay the debt.
  • The pawnbroker in case he doesn’t get his money back should share with the initial owner the eventual profits made out of the sale of the assets but not the losses.
  • It is open if it is halal or not as to whether a collateral can be used by the lender or the borrower during the loan time (can a borrower still drive his car while it is pledged in favor of an Islamic pawnshop?).