What is the ruling on murabahah sales, which are the transactions used by banks that call themselves Islamic?
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The questioner : I mean, O our Shaykh, this murabahah sale that exists in the banks now that are called Islamic, does this include installment sales?
The Shaykh : No, that is a different transaction.
The questioner : A car is sold for six thousand, and they make it seven thousand on installments?
The Shaykh : If the increase they took is in exchange for patience, then it is the same. But if they took it as a commission...
The questioner : No, it is not a commission. This car, if you like it, we will buy it for you at the price the owner wants to sell it for, which is five thousand, and then he gives it to you and registers it in your name for six thousand?
The Shaykh : It is the same.
The questioner : And you pay it off over a year or a year and a half?
The Shaykh : It is the same.
Another questioner: Then there is another way. A person, what is his value? He needs money, so he comes and gives you a check for one hundred dinars, for example, after two months, and he says to you, give me...
The Shaykh : Allahu Akbar.
The questioner : He gives you the check for one hundred dinars, but after two months he says to you, give me seventy, sixty, give me forty.
The Shaykh : I mean, is this intentional?
The questioner : Yes.
The Shaykh : No, that is a different transaction.
The questioner : A car is sold for six thousand, and they make it seven thousand on installments?
The Shaykh : If the increase they took is in exchange for patience, then it is the same. But if they took it as a commission...
The questioner : No, it is not a commission. This car, if you like it, we will buy it for you at the price the owner wants to sell it for, which is five thousand, and then he gives it to you and registers it in your name for six thousand?
The Shaykh : It is the same.
The questioner : And you pay it off over a year or a year and a half?
The Shaykh : It is the same.
Another questioner: Then there is another way. A person, what is his value? He needs money, so he comes and gives you a check for one hundred dinars, for example, after two months, and he says to you, give me...
The Shaykh : Allahu Akbar.
The questioner : He gives you the check for one hundred dinars, but after two months he says to you, give me seventy, sixty, give me forty.
The Shaykh : I mean, is this intentional?
The questioner : Yes.