The Ruling on Selling Iron on Installment Through the Bank
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The questioner:
May Allah reward you, Honorable Shaykh. The questioner asks: What is the ruling on going to the bank and conducting a transaction to sell iron on installment? My salary is with them, and then I arrange for the bank to sell the iron quickly and deposit the amount in my account. It is known that they take an interest on this that exceeds the original value of the iron by approximately thirty thousand riyals. What is the ruling on this process?
The Shaykh:
In reality, these are ruses and lies. They have no iron. They tell you, “We have iron in Germany, we have iron in Egypt, we have it in such-and-such place,” but they have no iron. They sell it to all of us. This is a lie and is not permissible. If you see the iron, if you have seen the iron with your own eyes, and you buy it, then you take possession of it. You take possession of it by loading it from its location, and you sell it in another place to someone else.
This is the method of entanglement in which some scholars have granted a dispensation. The conditions are that the seller owns the commodity, that the buyer sees it and takes possession of it and moves it from the seller’s location. Third, that he sells it to someone else, to someone other than the creditor. These are the conditions. They play with this transaction.
It is a lie, a lie. They tell you, "We have iron," but where is the iron? There is no iron. They tell you, "We all sell it," and they are all in a state of uncertainty. Also, it is not their right to sell it. You are the one who sells it. You are the one who sells it and takes charge of its sale, and you take possession of it. Yes.
The presenter:
May Allah reward you. Sometimes they do not have a commodity, but rather they have shares in companies, and they say that the activity is permissible.
The Shaykh:
The shares are unknown; you do not know them. If you know them, where are these shares? What is their transaction? Do you know them completely? Then there is no harm in you buying them and selling them yourself. They do not sell them; you own them and you sell them. But if they are merely shares that you do not know what they are, you do not know their transaction, and you do not know what they are in, then it is not permissible for you. These are unknown. Yes.
The presenter:
May Allah reward you.
May Allah reward you, Honorable Shaykh. The questioner asks: What is the ruling on going to the bank and conducting a transaction to sell iron on installment? My salary is with them, and then I arrange for the bank to sell the iron quickly and deposit the amount in my account. It is known that they take an interest on this that exceeds the original value of the iron by approximately thirty thousand riyals. What is the ruling on this process?
The Shaykh:
In reality, these are ruses and lies. They have no iron. They tell you, “We have iron in Germany, we have iron in Egypt, we have it in such-and-such place,” but they have no iron. They sell it to all of us. This is a lie and is not permissible. If you see the iron, if you have seen the iron with your own eyes, and you buy it, then you take possession of it. You take possession of it by loading it from its location, and you sell it in another place to someone else.
This is the method of entanglement in which some scholars have granted a dispensation. The conditions are that the seller owns the commodity, that the buyer sees it and takes possession of it and moves it from the seller’s location. Third, that he sells it to someone else, to someone other than the creditor. These are the conditions. They play with this transaction.
It is a lie, a lie. They tell you, "We have iron," but where is the iron? There is no iron. They tell you, "We all sell it," and they are all in a state of uncertainty. Also, it is not their right to sell it. You are the one who sells it. You are the one who sells it and takes charge of its sale, and you take possession of it. Yes.
The presenter:
May Allah reward you. Sometimes they do not have a commodity, but rather they have shares in companies, and they say that the activity is permissible.
The Shaykh:
The shares are unknown; you do not know them. If you know them, where are these shares? What is their transaction? Do you know them completely? Then there is no harm in you buying them and selling them yourself. They do not sell them; you own them and you sell them. But if they are merely shares that you do not know what they are, you do not know their transaction, and you do not know what they are in, then it is not permissible for you. These are unknown. Yes.
The presenter:
May Allah reward you.
Source
لقاء مفتوح في الحرس الوطني — alfawzan.live (36:08)
The Arabic text is a machine transcription of the audio recording.