Explaining the ruling on increasing the price in installment sales.
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The Shaykh : And these are noble morals, whereas their only concern is acquiring wealth by any means, as our Lord, Mighty and Majestic, indicated in the Qur'an by saying: [At-Tawbah 9:29] They do not forbid what Allah and His Messenger have forbidden. So they came to us with trades and sales that Muslims did not know before, except very rarely. Despite this, there is an explicit prohibition against taking an increase in exchange for a debt. As for installment sales, there was none of that at the time; one would be patient in fulfilling his duty to his Muslim brother, but he had a greed for money, so he would say to him: "I will sell you this item on credit, but you must give me an increase over the cash price." Despite this, he (peace and blessings be upon him) said: Sunan Abi Dawud 3461Hasan (Al-Albani) So what I want to say in conclusion on this issue is: . This Muslim trader, if he engaged in buying and selling within the limits of the Shari'ah rulings, his trade would be more profitable in this world and the Hereafter. In this world, not just the Hereafter, but in this world as well. Why?
We are now giving an example of two traders. One sells at the two prices known today: cash and installment. The other trader sells at one price, which is the installment price. One price, but the installment price. Which one, from the economic standpoint, in terms of the number of customers and the amount of profit, will be more profitable? The one who sells at two different prices, or the one who sells at one price, which is the installment price?
Tell me now, which one will be more profitable, Doctor? Or are you with us?
The questioner : No, is installment sale always...?
The Shaykh : No, no, I tell you: if he sells on installment, he sells at the cash price.
The questioner : At the lower price.
The Shaykh : At the lower price. So which of the two traders will be more profitable from a material standpoint?
The questioner : The one who sells at the same price.
The Shaykh : There is no doubt, this is more profitable. Two traders, both selling for cash and on installment. One at two prices, and the other at one price, which is the lower price, the cash price. Is that clear?
The questioner : Yes.
The Shaykh : Okay, which one will have a better business and greater profit?
The questioner : One price.
The Shaykh : One price, good. Why do Muslims not do this?
Because they are greedy, because they were raised in a certain way. How?
The questioner : The one who sells at one price is more profitable than the one who sells at two prices. This is not available.
The Shaykh : I don't know, this is what I am saying. I say: Why do Muslims not sell at two prices: a cash sale and an installment sale at one price, which is the lower price?
The questioner : The whole world.
The Shaykh : Allow me, why do they not sell? Because we are not truly Muslims. Is that clear, or do you have a problem with that?
The questioner : No.
The Shaykh : Ah, I said something: that this is more profitable in this world and the Hereafter. As for this world, the matter is clear: this one's goods will sell well, and that one's goods will stagnate. And his Hereafter profit will be doubled from two aspects:
The first aspect: that he will establish a good practice among traders. The traders will be forced to compete with him, and this is the nature of traders. You see a man who opens a shop selling, for example, cups or vessels, and his market is doing well, so another man comes and opens a shop next to him. This is out of jealousy and envy.
So if this Muslim sells at two prices, cash and installment, but at one price, which is the cash price, not the increased price, the lower one, he will establish a good practice for the traders, and they will follow it despite their noses, not out of their own will, because their goods have stagnated. And the situation in the Islamic world will turn around. The usurious transactions that we are living in now will turn into Shari'ah-compliant transactions. You have the price, pay it. If you do not have the price, I will be patient with you until the term that you agree to. Where is the second profit from the second aspect?
The first profit is that he established a good practice. The second profit, what Allah willed: The Messenger (peace and blessings be upon him) said:: You, the Muslim, if you lend your Muslim brother one hundred dinars, it is as if you gave charity with half of it, fifty dinars. If you lend him two hundred dinars, it is as if you gave charity with one hundred dinars. So this trader will earn Hereafter rewards, as they say in Syria: "like a saw, on the way up and on the way down". Why do Muslims not do this?
Because there is no longer any mindfulness of Allah in the hearts. Now, do you have something to say, Shaykh Nasser, on this occasion, because you wanted to say something?
The questioner : Yes, I have something on this occasion, may Allah reward you and the listeners. It is as if you are saying: If this building is six hundred thousand, and Zayd from among the people wants this building, and he has nothing until a year later, he takes this building after a year with no increase?
The Shaykh : No, that is it.
The questioner : Is this him?
The Shaykh : Yes, that is correct.
The Shaykh : But what is the matter with Muslims now, as you just mentioned, that even a brother to his brother, son of the same mother and father, does this with him.
The Shaykh : This is the problem.
The questioner : And there is a note.
The Shaykh : Please go ahead.
Fight those who do not believe in Allah or in the Last Day and who do not consider unlawful what Allah and His Messenger have made unlawful and who do not adopt the religion of truth from those who were given the Scripture - [fight] until they give the jizyah willingly while they are humbled.
قاتلوا الذين لا يُؤمنون بالله ولا باليوم الآخر ولا يُحرِّمون ما حرَّم الله ورسولُه ولا يدينون دين الحق من الذين أوتوا الكتاب حتى يُعطوا الجزية عن يدٍ وهم صاغرونhe should have the lesser of the two or it will involve usury.
فله أوكسهما أو الرباThe Muslim trader, as it came in some hadiths, is with the truthful, the martyrs, and the righteous on the Day of Resurrection.
التاجر المسلم -كما جاء في بعض الأحاديث- الصدوق مع الشهداء والصالحين يوم القيامةWe are now giving an example of two traders. One sells at the two prices known today: cash and installment. The other trader sells at one price, which is the installment price. One price, but the installment price. Which one, from the economic standpoint, in terms of the number of customers and the amount of profit, will be more profitable? The one who sells at two different prices, or the one who sells at one price, which is the installment price?
Tell me now, which one will be more profitable, Doctor? Or are you with us?
The questioner : No, is installment sale always...?
The Shaykh : No, no, I tell you: if he sells on installment, he sells at the cash price.
The questioner : At the lower price.
The Shaykh : At the lower price. So which of the two traders will be more profitable from a material standpoint?
The questioner : The one who sells at the same price.
The Shaykh : There is no doubt, this is more profitable. Two traders, both selling for cash and on installment. One at two prices, and the other at one price, which is the lower price, the cash price. Is that clear?
The questioner : Yes.
The Shaykh : Okay, which one will have a better business and greater profit?
The questioner : One price.
The Shaykh : One price, good. Why do Muslims not do this?
Because they are greedy, because they were raised in a certain way. How?
The questioner : The one who sells at one price is more profitable than the one who sells at two prices. This is not available.
The Shaykh : I don't know, this is what I am saying. I say: Why do Muslims not sell at two prices: a cash sale and an installment sale at one price, which is the lower price?
The questioner : The whole world.
The Shaykh : Allow me, why do they not sell? Because we are not truly Muslims. Is that clear, or do you have a problem with that?
The questioner : No.
The Shaykh : Ah, I said something: that this is more profitable in this world and the Hereafter. As for this world, the matter is clear: this one's goods will sell well, and that one's goods will stagnate. And his Hereafter profit will be doubled from two aspects:
The first aspect: that he will establish a good practice among traders. The traders will be forced to compete with him, and this is the nature of traders. You see a man who opens a shop selling, for example, cups or vessels, and his market is doing well, so another man comes and opens a shop next to him. This is out of jealousy and envy.
So if this Muslim sells at two prices, cash and installment, but at one price, which is the cash price, not the increased price, the lower one, he will establish a good practice for the traders, and they will follow it despite their noses, not out of their own will, because their goods have stagnated. And the situation in the Islamic world will turn around. The usurious transactions that we are living in now will turn into Shari'ah-compliant transactions. You have the price, pay it. If you do not have the price, I will be patient with you until the term that you agree to. Where is the second profit from the second aspect?
The first profit is that he established a good practice. The second profit, what Allah willed: The Messenger (peace and blessings be upon him) said:
Lending two dirhams is charity of one dirham.
قرضُ درهمين صدقة درهمBecause there is no longer any mindfulness of Allah in the hearts. Now, do you have something to say, Shaykh Nasser, on this occasion, because you wanted to say something?
The questioner : Yes, I have something on this occasion, may Allah reward you and the listeners. It is as if you are saying: If this building is six hundred thousand, and Zayd from among the people wants this building, and he has nothing until a year later, he takes this building after a year with no increase?
The Shaykh : No, that is it.
The questioner : Is this him?
The Shaykh : Yes, that is correct.
The Shaykh : But what is the matter with Muslims now, as you just mentioned, that even a brother to his brother, son of the same mother and father, does this with him.
The Shaykh : This is the problem.
The questioner : And there is a note.
The Shaykh : Please go ahead.