Sale on Credit
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Fatwa No. ( 1178 ):
Q: I am a man who owns a sum of money, and I invest it by buying cars for cash. The price of the car is nine thousand riyals, then I sell the car on installments for one or two years, for a total of fourteen thousand, and for ten thousand riyals, after taking a down payment of two thousand riyals and three thousand riyals. I am confused about this; is this sale valid or is it riba (usury or interest), and what is the ruling on what has passed in this sale? I have been doing this for two years.
A: Allah has made sale lawful and forbidden riba (usury or interest), so He the Exalted said:[Al-Baqarah 2:275] , and among what He made lawful in sale is sale on credit. The permissibility of this is indicated by the saying of Allah the Exalted: [Al-Baqarah 2:282] the verse. Al-Qurtubi said in his tafsir (exegesis): It covers all debts by consensus. In the two Sahihs (authentic collections), it is narrated from Aisha (may Allah be pleased with her) that Barira was sold by her people for nine awqiyah (ounces), in nine installments, one awqiyah each year, and the Prophet (peace and blessings be upon him) approved that. By this, it is known that it is permissible to deal in the manner the questioner asked about; because it falls under the generality of the verse.
about which the questioner asked; because it falls under the generality of the verse.
Q: I am a man who owns a sum of money, and I invest it by buying cars for cash. The price of the car is nine thousand riyals, then I sell the car on installments for one or two years, for a total of fourteen thousand, and for ten thousand riyals, after taking a down payment of two thousand riyals and three thousand riyals. I am confused about this; is this sale valid or is it riba (usury or interest), and what is the ruling on what has passed in this sale? I have been doing this for two years.
A: Allah has made sale lawful and forbidden riba (usury or interest), so He the Exalted said:
But Allah has permitted trade and has forbidden interest
وَأَحَلَّ اللَّهُ الْبَيْعَ وَحَرَّمَ الرِّبَاO you who have believed, when you contract a debt for a specified term, write it down. And let a scribe write [it] between you in justice. Let no scribe refuse to write as Allah has taught him.
يَا أَيُّهَا الَّذِينَ آمَنُوا إِذَا تَدَايَنْتُمْ بِدَيْنٍ إِلَى أَجَلٍ مُسَمًّى فَاكْتُبُوهُ وَلْيَكْتُبْ بَيْنَكُمْ كَاتِبٌ بِالْعَدْلِ وَلاَ يَأْبَ كَاتِبٌ أَنْ يَكْتُبَ كَمَا عَلَّمَهُ اللَّهُabout which the questioner asked; because it falls under the generality of the verse.
Source
www.alifta.gov.sa
The Arabic text is copied verbatim from the original source, without any edits.