Jamiatul Ulama KZN

Repaying more than the principal of a loan is prohibited (2/2)

· 2 Jumada II 1435 AH1 min readEnglish

Question

Q. I have a store where I sell goods for cash and on credit. The goods that I sell on credit are sold at a 10% markup due to the differed payment. Is this permissible?

Answer

It is permissible to sell items at a higher price if sold on credit. This will be on condition that the price is fixed at the time of the transaction; for example, the cash price of an item is R500 but on credit, it is for R600 payable over six months at R100 per month. (al-Hidaya, Fatawa Mahmudiyyah, Vol: 24, Pg: 195)

And Allah Knows Best

Answered by
Mufti Suhail Tarmahomed
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Source: Jamiatul Ulama KZN — https://jamiat.org.za/repaying-more-than-the-principal-of-a-loan-is-prohibited/
Fatawa SA: https://fatawa.co.za/fatwa/jamiat-11181-2

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