The issue of deferring payment and early settlement in installment sales
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A company that builds apartments and sells them on installment or for cash,He asks: If a man buys one of these apartments on installment over a period of ten years, pays three installments, and wants to pay the remaining installments in a lump sum, does he have the right to a discount?
He does not have the right.Meaning: If a man buys a commodity on installment over a period of five years, then Allah makes it easy for him and he is able to pay it off within two years, does he have the right to demand a discount from the seller or not?We say: He does not have the right.But if the seller agrees and says: I accept early payment from you with a reduction; the correct view is that there is no harm in it, because this is in the interest of both the creditor and the debtor, and it involves no injustice and no riba.
He does not have the right.Meaning: If a man buys a commodity on installment over a period of five years, then Allah makes it easy for him and he is able to pay it off within two years, does he have the right to demand a discount from the seller or not?We say: He does not have the right.But if the seller agrees and says: I accept early payment from you with a reduction; the correct view is that there is no harm in it, because this is in the interest of both the creditor and the debtor, and it involves no injustice and no riba.