The Ruling on Selling Gold Jewelry on Credit and Lending to the Buyer

The questioner:
I am a jewelry owner, and my relatives and dear friends come to me and buy gold jewelry from me, leaving a portion of the price of the jewelry with them. They say they will bring it after a month, or I am greatly distressed by many of them. Is this sale valid? And if I lend them money in place of the jewelry as a loan for a period, and then they buy gold from my shop with the loan I gave them, is that permissible? Please inform us; may Allah reward you.

The Shaykh:
Jewelry is of two types: jewelry made of gold or silver, or jewelry made of something other than gold and silver, such as black stones, pearls, and other jewelry that is not of gold or silver. There is no harm in selling jewelry that is not of gold or silver for a spot price or a deferred price, or receiving its price in the meeting or outside the meeting. These are like other goods; it is not required to receive their price in the meeting. As for jewelry that is of gold or silver, if you sell it for dirhams, the exchange must take place in the meeting. The exchange must take place in the meeting: you hand over the gold or silver jewelry to them, and you receive the value from them in the meeting, so that nothing remains of it. If something remains of it or is delayed, then this is considered riba (usury or interest), specifically riba al-nasi'ah (usury of deferment). ," until he said (peace and blessings be upon him) at the end of the hadith: "If these categories differ, then sell as you wish, provided it is hand to hand" , meaning the exchange must take place. So if you sell gold for silver coins or paper money, the exchange must take place in the meeting. And if you sell gold for gold coins or pieces of gold, two things are required: equality in weight and the exchange in the meeting. However, if you sell gold for silver or paper money, a difference in amount is permissible, but the exchange must take place in the meeting. Yes.

The presenter:
Honorable Shaykh.

The Shaykh:
As for lending them money, if this is done through a scheme (tahil), it is not permissible. But if you lend them a loan, and they are not doing so for the sake of a scheme, but you lend them a sum of money and they buy gold from you and pay you the full price from this loan, there is no harm in that. However, if you lend them for the sake of a scheme, it is not permissible.