Mufti Online — Madrasah Ta'leemuddeen

Different cash and credit price

· 14 Rabiʻ I 1438 AH1 min readEnglish

Question

Is installment business halaal or haraam in Islam. Explaination: Company XYZ purchasing Product from Market in 1000 Rs. and Sell it on 2000 RS (double Rate) in 20 installments (100 Rs per day). One recory man is reserved for it for Recover Payment from Buyer Shops. (Recory man Salary is about 15000/month) But ON Cash Payment, Company Sale Same Product in (1500 RS). Is this type of business is halal or Haram in Islam.

Answer

It is permissible, provided that the price of the item being sold is fixed and does not change in the case where the customer defaults in payment. If the customer does not pay the instalment on time then the seller cannot increase the price. If the seller increases the price, it will be interest.

And Allah Ta'ala (الله تعالى) knows best.

Answered by
Mufti Zakaria Makada
Checked & approved by
Mufti Ebrahim Salejee (Isipingo Beach)
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Source: Mufti Online — Madrasah Ta'leemuddeen — https://muftionline.co.za/node/17300
Fatawa SA: https://fatawa.co.za/fatwa/muftionline-17300

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