Is installment sales a form of riba al-nasi'ah (usury of deferment)?
Machine translationRead the Arabic original
Question:
He says: Honorable Shaykh, may Allah grant you success, is installment payment considered a form of riba al-nasi'ah (usury of deferment)?
Answer:
What is the detail? There is a distinction here. If it is an installment sale of a commodity for a deferred price, there is nothing wrong with that, as the benefit of the people requires this, and the default in transactions is permissibility. So if he sells a car, for example, for a deferred price in installments, paying one installment each month or each year until it is finished, there is nothing wrong with that. Yes.
He says: Honorable Shaykh, may Allah grant you success, is installment payment considered a form of riba al-nasi'ah (usury of deferment)?
Answer:
What is the detail? There is a distinction here. If it is an installment sale of a commodity for a deferred price, there is nothing wrong with that, as the benefit of the people requires this, and the default in transactions is permissibility. So if he sells a car, for example, for a deferred price in installments, paying one installment each month or each year until it is finished, there is nothing wrong with that. Yes.
Source
الفوزان -أشرطة- شرح زاد المستقنع مع الأسئلة - 050-كتاب البيوع - 17-7-23 هـ — archive.org (1:15:32)
The Arabic text is a machine transcription of the audio recording.