The Ruling on Lending Goods on Credit with an Increase in the Price

The questioner : Yes, Salim. What was the difference, Shaykh? Did we address it? Or does it not matter to you? It did not matter to you regarding the increase. Today, the well-known division is...

The Shaykh : No, the car—may Allah bless you—is a sale, not a loan, but in reality it is a loan. That is, a person comes and says, “I want such-and-such a car from such-and-such a showroom,” and the merchant says, “Yes.” Then the merchant goes and buys it from the showroom and sells it to this person for deferred payment that is higher than the price. This is exactly the loan itself, because its reality is that he lent him the price with what? With an increase. He bought it for cash for fifty thousand and sold it to this person for sixty thousand without a year, and he did not intend to own it, nor did it cross his mind, and had it not been for this person who requested it, he would not have bought it. So this purchase is a means to increase the loan he gave. For this reason, we hold that this is more severe than if he had said, “Give me fifty thousand or sixty thousand for a term.” This is more severe because it involves a stratagem, and know that a stratagem regarding the forbidden makes it more forbidden, because it entails falling into its sins and harms, and an increase? A stratagem. What? Deception and betrayal. For this reason, the disbelief of the hypocrites is greater than the open disbelief. Ayub al-Sakhtiyani (may Allah have mercy on him) said, “They deceive Allah as they deceive children. If they had done the matter in its proper form, it would have been easier.” And he spoke the truth (may Allah have mercy on him), because the one who commits riba (usury or interest) openly and in its proper form knows that he has disobeyed Allah, so shame before Allah the Exalted arises in his heart and repentance occurs. But the one who sees that this act is lawful and a deception, what does he say? He does not repent; he continues in his work and sees that he has exited the forbidden. The criterion in matters is their objectives, not their forms. For this reason, the Prophet (peace and blessings be upon him) informed that people will come who drink khamr (intoxicants) and call it by a name other than its name, and it is khamr. Now, khamr is called by a name other than its name. What do those who deem it lawful call it? “Spiritual drinks,” “spiritual beverages,” and I cannot even say they are spiritual. Yes, may Allah grant us well-being.