What is the ruling on installment sales, especially for those who deal with banks? (And an explanation of the hadith: "Whoever sells two sales in one sale, it is either the worst of the two or usury")

The questioner : Excuse me, the topic of installment sales and the ruling of the Shari'ah on buying and selling on installments, meaning, and Islamic bank transactions exactly, and thank you?

The Shaykh : Installment sales, first of all, are a practical innovation that Muslims did not know in all the past centuries. Rather, it is one of the imports that came to them from the disbelievers who used to occupy their lands, colonize them, and rule them with their disbelieving laws. Then, when they left the greater part of it, they left their bad effects in it. So Muslims are living today on those transactions that the disbeliever imprinted on them. This is to clarify that this type of sale did not exist but occurred due to the occupation of Islam by the disbelievers. Second, and most importantly, the Prophet (peace and blessings be upon him), as he said with truth: Among that, he prohibited what is called today installment sales. I said first that this sale is an innovation that Muslims did not know in all their centuries, but I want to say also that this name is an innovation. There is nothing in the books of jurisprudence called installment sales. In the books of Muslims, there is what is called debt and what is called the good loan. This good loan has become in the transactions of Muslims a name without a body, having no reality in their transactions, even though the Prophet (peace and blessings be upon him), as he encouraged the good loan and exaggerated in it to the degree that he considered lending two dinars as if you gave charity of one dinar. If you lend your Muslim brother two dinars, it is as if you took out of your pocket a charity of one dinar. As he encouraged the good loan, he prohibited taking an increase in exchange for patience with your Muslim brother in repayment. This is what is called installment sales. So what did he (peace be upon him) say? He said first: And in another hadith: The narrator of this hadith was asked about the meaning of this prohibition: He said: That you say, "I sell you this for cash at such-and-such, and on credit at such-and-such." I sell you this device for one hundred dinars cash, for one hundred and five on installments, meaning on credit. He (peace be upon him) said: Meaning, the lesser of the two, or if you take an increase, it is usury. This device, you sold it for one hundred and five; the five is in exchange for patience. If there were an Islamic ruling among individuals, let alone among rulers, this buyer who is defrauded, from whom five dinars are taken as an increase in exchange for the merchant's patience in repayment, would have the right to seek justice against him and complain to the scholars that this took five dinars from me because he sold me for six months, for example. They would say to him, "It is obligatory for you not to take from him except the hundred, otherwise you have taken the five as usury." This is the meaning of his saying (peace be upon him): Meaning, the item sold is one, but what is presented is two sales: cash at such-and-such, and credit at such-and-such. So the Messenger (peace be upon him) calls the increase, which is the credit, usury in clear Arabic. And the second hadith: explains to Muslims what the meaning of two sales in one sale is. It also says that you say, "I sell you this for cash at such-and-such, and on credit at such-and-such plus such-and-such." All banks, we do not exclude from them, unfortunately, what is called Islamic banks. That is because they exploit the need of the needy and take from them an increase in exchange for installments, even though they are not merchants who sell, but rather through "double dealing," meaning turning and twisting, which is called in the books of jurisprudence legal stratagems. The needy person goes to the bank and says, "I want from you a good loan of five hundred, a thousand." They used to give five hundred under the title of the good loan, but a thousand was out of the question, and five thousand was out of the question. They used to, if someone asked for five hundred with investigations, restrictions, and precise conditions that may not be possible for every poor person to fulfill, they would give five hundred, no more. But if the request was a thousand and more, they would say, and they still say, even for the one who wants five hundred, because this door is closed. Why was it closed? Because it was not for the realization of the Shari'ah ruling, that a loan of two dinars is a charity of one dinar. That was not the intention. We have not looked into what is in the hearts, but "
These are our effects that indicate to us *** So look after us at the effects "
Why did they not continue with this good loan? Because it was not for the sake of Allah, but rather for the sake of the advertising of the Islamic bank