Selling appliances on installment and requesting a pledge
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Fatwa number ( 20456 )
Q: I have an establishment for selling electrical appliances on installment, and this is through a pledge, about which Allah the Exalted said:[Al-Baqarah 2:283] The customer comes and buys electrical appliances from me for a certain amount, so I ask him for a pledge of gold equal to that amount or slightly less, which remains in my trust until he finishes paying all the installments due to him within a specific, known period that we agreed upon together. If the customer finishes paying those installments within the agreed period, I return the pledge to him in full as I received it from him. I weigh the gold and determine its type and value on the day the sale is made. Is what I am doing the correct Sharia method for a pledge? And if I and the customer agree to sell the pledge in case he does not pay the installments due to him and recover all or the remainder of his installments, is it permissible for me to sell without his knowledge, or must I inform him that if he does not pay, I will sell the pledge? Please advise us on this.
He did not make the payment, so I will sell the pledge? Please advise me on this.
A: It is permissible in the Sharia for you to ask the one who buys goods from you on deferred debt to pledge gold or its equivalent as security for that debt; this is because the pledge is established by the Book, the Sunnah, and scholarly consensus. The essence of a pledge is securing a debt with a specific item that is permissible to sell in the Sharia, so that the debt is recovered from the pledge or from its price if it is difficult to recover the debt from the debtor. However, you must take care of the pledge, because it is a trust in your possession. If the pledgor does not fulfill his debt or does not sell the pledge to satisfy you from its price, the recourse for selling it and taking your right from it is the Sharia court. And success is from Allah, and may Allah send prayers and blessings upon our Prophet Muhammad, his family, and his Companions.
Q: I have an establishment for selling electrical appliances on installment, and this is through a pledge, about which Allah the Exalted said:
And if you are on a journey and cannot find a scribe, then a security deposit [should be] taken
وَإِنْ كُنْتُمْ عَلَى سَفَرٍ وَلَمْ تَجِدُوا كَاتِبًا فَرِهَانٌ مَقْبُوضَةٌHe did not make the payment, so I will sell the pledge? Please advise me on this.
A: It is permissible in the Sharia for you to ask the one who buys goods from you on deferred debt to pledge gold or its equivalent as security for that debt; this is because the pledge is established by the Book, the Sunnah, and scholarly consensus. The essence of a pledge is securing a debt with a specific item that is permissible to sell in the Sharia, so that the debt is recovered from the pledge or from its price if it is difficult to recover the debt from the debtor. However, you must take care of the pledge, because it is a trust in your possession. If the pledgor does not fulfill his debt or does not sell the pledge to satisfy you from its price, the recourse for selling it and taking your right from it is the Sharia court. And success is from Allah, and may Allah send prayers and blessings upon our Prophet Muhammad, his family, and his Companions.
Source
www.alifta.gov.sa
The Arabic text is copied verbatim from the original source, without any edits.