Stipulating an increase on a loan is

Q: I asked my elder brother to loan me 4000 Riyals interest-free. My brother accepted, provided that I purchase a car for him by installments. He wanted me to purchase the car in my name and he would pay all the monthly installments . I accepted the condition and took the loan. However, one of my colleagues told me that this agreement is considered Riba (usury/interest). When I told my brother about this, he became angry and told me that this mutual agreement must be honored He told my parents about this and they also became angry with me. What is the ruling on this agreement?

A: This condition is Batil (null and void) and you should not fulfill it. (Part No. 14; Page No. 136) It involves a type of interest to the creditor, and any loan yielding interest is regarded as Riba. Therefore, you should not purchase the car. If he asks you to pay back the loan, you must pay it without any increase. Moreover, you must not obey your parents concerning purchasing the car for your brother who loaned you the money with this stipulation. There is no obedience to a creature in disobedience to the Creator. May Allah grant us success. May peace and blessings be upon our Prophet Muhammad, his family, and Companions.