What is the ruling on installment sales?
Machine translationRead the Arabic original
Question:
He says: What is the ruling on selling on credit? For example, an item worth one thousand riyals for cash is sold on monthly installments for one thousand and three hundred riyals?
Answer:
There is nothing wrong with it. Installment sales were practiced; Buraydah sold in the time of the Prophet (peace and blessings be upon him) for nine years, nine annual installments, three hundred and sixty dirhams each year, forty each year. Selling on installments is permissible. If the item is worth one hundred and you sell it on installments for one hundred and twenty, or one hundred and thirty, say ten each month, there is nothing wrong with it. This is because the deferred payment is not the same as the immediate payment; the immediate payment in one's hand is the cheapest, while the deferred payment in one's hand seeks an increase, seeking profit. Yes.
He says: What is the ruling on selling on credit? For example, an item worth one thousand riyals for cash is sold on monthly installments for one thousand and three hundred riyals?
Answer:
There is nothing wrong with it. Installment sales were practiced; Buraydah sold in the time of the Prophet (peace and blessings be upon him) for nine years, nine annual installments, three hundred and sixty dirhams each year, forty each year. Selling on installments is permissible. If the item is worth one hundred and you sell it on installments for one hundred and twenty, or one hundred and thirty, say ten each month, there is nothing wrong with it. This is because the deferred payment is not the same as the immediate payment; the immediate payment in one's hand is the cheapest, while the deferred payment in one's hand seeks an increase, seeking profit. Yes.
Source
قناة «فضيلة الشيخ ابن باز Alsheikh Binbaz»، 436 ما الحكم في بيع التقسيط؟ للإمام ابن باز — youtube.com
The Arabic text is a machine transcription of the audio recording.