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Fatwa CenterCombining a lease and loan transactions is forbidden
Question
Dear Sir or Madam, Asalamu Alikum.W.R.W.B, I live in the capital of Afghanistan, Kabul. I paid 45000 USD to the house owner and live in a five room apartment only paying 20 USD monthly rent to the owner. I asked some scholars about this issue if this is" Riba" or not, but I couldn't find a clear answer, so hereby reverted to you to give me fitwa in light of Quran and Hadeths only. Regards,
Answer
All perfect praise be to Allaah, The Lord of the Worlds. I testify that there is none worthy of worship except Allaah, and that Muhammad, sallallaahu ‘alayhi wa sallam, is His Slave and Messenger.
If the apartment's cost is to be paid in two parts, an advanced payment of 45,000 dollars and then 20 dollars monthly as rent paid to the owner for a specific period of time like one year, two years, or the like, there is no harm in that.
However, if you mean that the landlord takes the 45,000 dollars as a loan to use it during the lease period and then he pays the sum back to the tenant [when he leaves the rental apartment], then this is impermissible because, in such a way, the loan yields profits [for the lender] during this lease period. Accordingly, the value of the rent becomes unknown because it includes the specified sum of money (the monthly 20 dollars) as well as the profits gained through the loan during the lease period.
Ibn Al-Qayyim 
wrote, “It is impermissible to combine a loan [contract] and a sales transaction because it is a means to acquiring profits on the loan by the taking more than what was given by means of sale or leasing as it is actually done.”
Allaah Knows best.
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