Renovating the school in installments after the contractor pays the full amount
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Fatwa No. ( 21006 )
Praise be to Allah alone, and may blessings and peace be upon the one after whom there is no prophet. And after: The Permanent Committee for Scholarly Research and Ifta has reviewed what was sent to His Eminence the Grand Mufti from the questioner: the owner of King Saud Private Schools for Boys in Dhahran, via the Center for Da'wah and Guidance in Dammam, and referred to the Committee by the General Secretariat of the Council of Senior Scholars with number (3066) and date 4/6/1420 AH. The questioner asked a question, the text of which is: The schools were opened eight years ago, and they now need expansion for the secondary stage. This expansion is estimated at one million riyals, but this amount is not available in cash. Therefore, the people who will carry out the expansion, repair, and equipment agreed to do so on the condition that the aforementioned amount be returned after five years, and I will pay it in installments
in an amount greater than the aforementioned sum. Is this permissible? I ask you to issue a fatwa for me, and may Allah preserve you and care for you.
After studying the inquiry, the Committee answered: If the situation is as described, there is no harm in the aforementioned contract, whereby the value of the construction is paid later at a known term with an increase over the amount of the value paid at a shorter term, because there is nothing in the Shari'ah that prevents this. However, if the people are lending you the aforementioned amount and collecting it with the increase, it is not permissible; because it is a loan that brings benefit. And success is from Allah, and may Allah send blessings and peace upon our Prophet Muhammad, his family, and his companions.
Praise be to Allah alone, and may blessings and peace be upon the one after whom there is no prophet. And after: The Permanent Committee for Scholarly Research and Ifta has reviewed what was sent to His Eminence the Grand Mufti from the questioner: the owner of King Saud Private Schools for Boys in Dhahran, via the Center for Da'wah and Guidance in Dammam, and referred to the Committee by the General Secretariat of the Council of Senior Scholars with number (3066) and date 4/6/1420 AH. The questioner asked a question, the text of which is: The schools were opened eight years ago, and they now need expansion for the secondary stage. This expansion is estimated at one million riyals, but this amount is not available in cash. Therefore, the people who will carry out the expansion, repair, and equipment agreed to do so on the condition that the aforementioned amount be returned after five years, and I will pay it in installments
in an amount greater than the aforementioned sum. Is this permissible? I ask you to issue a fatwa for me, and may Allah preserve you and care for you.
After studying the inquiry, the Committee answered: If the situation is as described, there is no harm in the aforementioned contract, whereby the value of the construction is paid later at a known term with an increase over the amount of the value paid at a shorter term, because there is nothing in the Shari'ah that prevents this. However, if the people are lending you the aforementioned amount and collecting it with the increase, it is not permissible; because it is a loan that brings benefit. And success is from Allah, and may Allah send blessings and peace 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.