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﴿ فَاسْأَلُوا أَهْلَ الذِّكْرِ إِن كُنتُمْ لَا تَعْلَمُونَ ﴾

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What is the ruling on selling goods in installments at a price higher than the cash price?

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Question : The questioner says: Some people sell goods for cash and in installments, but the price differs between cash and installments. Is there any riba (usury or interest) in this?

Answer : Yes, meaning some people say: You sell the item for one hundred in cash and one hundred and fifty in installments. Is there any riba in this?
The answer is no, except if he sells gold for silver, for it is known that this is not permissible, because the sale of gold for silver must be hand-to-hand. But dirhams for food, or a car for dirhams, there is nothing wrong with it. The shortening and the situation, all of it is permissible, even if the price increases in installments, and this is necessary; it will increase, no doubt. Except for a man who knows his partner and wants to favor him and delay the price for him without an increase, that is possible. But the default is that installments differ from the immediate, from cash. If I am selling this car for fifty thousand and a person comes wanting it to be in installments, I do not sell it for less than sixty thousand according to the term. If the term increases, I increase the price, and there is nothing wrong with this. The evidence for this is the saying of Allah the Exalted:
But Allah has permitted tradeوَأَحَلَّ اللَّهُ الْبَيْعَ
[Al-Baqarah 2:275]
And Allah the Exalted allowed sale in cash and in installments; He did not mention that it must be cash or installments. And the saying of Allah the Exalted:
O you who have believed, when you contract a debt for a specified term, write it down.يَا أَيُّهَا الَّذِينَ آمَنُوا إِذَا تَدَايَنتُم بِدَيْنٍ إِلَىٰ أَجَلٍ مُّسَمًّى فَاكْتُبُوهُ
[Al-Baqarah 2:282]
This is the installment. It remains for us to say: If he said, "Take this car for fifty in cash," what do people call it? Cash, cash. This language, I do not know where it came from. Yes, it is English. We seek refuge in Allah from the habits of the English. Well, instead of saying "cash," we say "in cash." What is "cash"? Yes. Well, I told him, "This car is fifty in cash and sixty on credit."
Source قناة «فضيلة الشيخ محمد بن صالح العثيمين»، لقاء[22 من 31] ما حكم بيع السلع أقساطاً بسعر أعلى من النقد؟!! الشيخ ابن عثيمين - مشروع كبار العلماء — youtube.com

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

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