Selling dirhams for cash with more dirhams on a deferred basis
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Fatwa No. ( 1970 )
Q: I took from a man an amount of four thousand riyals, and he gave me a promissory note for six thousand riyals in cash, to be paid in monthly installments of five hundred riyals each. Is this permissible or not?
A: Selling dirhams for cash with more dirhams on a deferred basis is riba al-nasi'ah (usury of deferment) and riba al-fadl (usury of excess in a like-for-like exchange). The Book and the Sunnah have indicated the prohibition of riba in both its types. Based on this, it is not permissible to sell four thousand in cash for six thousand on a deferred basis. The seller is entitled only to the principal of his capital, which is four thousand only. If a dispute arises
between you two, the reference is to the court, and you are both required to repent to Allah (Glorified and Exalted is He) from this great sin; for Allah (Glorified and Exalted is He) said:[An-Nur 24:31]
Q: I took from a man an amount of four thousand riyals, and he gave me a promissory note for six thousand riyals in cash, to be paid in monthly installments of five hundred riyals each. Is this permissible or not?
A: Selling dirhams for cash with more dirhams on a deferred basis is riba al-nasi'ah (usury of deferment) and riba al-fadl (usury of excess in a like-for-like exchange). The Book and the Sunnah have indicated the prohibition of riba in both its types. Based on this, it is not permissible to sell four thousand in cash for six thousand on a deferred basis. The seller is entitled only to the principal of his capital, which is four thousand only. If a dispute arises
between you two, the reference is to the court, and you are both required to repent to Allah (Glorified and Exalted is He) from this great sin; for Allah (Glorified and Exalted is He) said:
And turn to Allah in repentance, all of you, O believers, that you might succeed.
وَتُوبُوا إِلَى اللَّهِ جَمِيعًا أَيُّهَا الْمُؤْمِنُونَ لَعَلَّكُمْ تُفْلِحُونَ
Source
www.alifta.gov.sa
The Arabic text is copied verbatim from the original source, without any edits.