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﴿ فَاسْأَلُوا أَهْلَ الذِّكْرِ إِن كُنتُمْ لَا تَعْلَمُونَ ﴾

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The Difference Between Salam and 'Inah

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Question:
What is the difference, Shaykh, he says, between a salam sale and 'inah, and what is the ruling on selling what one does not own?

Answer:
Salam is the advance payment of the price and the advance delivery of the item; this is salam and a loan. As for 'inah, it is when a person sells a commodity for a deferred price, then buys it back from the one from whom he borrowed it for a spot price. This is not permissible. The borrower should sell it to someone else, not to the one from whom he borrowed it. If he sells it to the one from whom he borrowed it, that is 'inah, because the original value of his money has returned to him. Yes.
Source نور على الدرب - الفوزان - 03/095 — archive.org (13:38)

The Arabic text is a machine transcription of the audio recording.

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