Discussion on installment sales.
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The Shaykh : What is called today installment sales, do you know of a sale called installment sales?
The questioner : We have a system in the banks in Sudan.
The Shaykh : Answer, may Allah bless you, the question and do not prolong it.
The questioner : We do not have what we know, meaning we know that installment sales, which is the initial price, meaning the first price, you increase it.
The Shaykh : This is installment sales, meaning in the old jurisprudential terminology, when they sold on credit, they added a price for the credit period. Do you understand this?
The questioner : I understand.
The Shaykh : Okay, this is what is called installment sales in these lands today.
I sell you this item for such-and-such cash, and for such-and-such on credit, by debt or by installment. This increase is called by some murabahah. Do you understand up to here?
The questioner : I understand, but we have this murabahah in ...
The Shaykh : Listen, my brother, may Allah guide you.
The questioner : I have the second question, not the beginning of the question, O Shaykh.
The Shaykh : Listen, O Shaykh, may Allah guide you, when I finish the answer, and if you ask me, be concise in the answer. So, to ensure that you understand me, I ask you such a question. So I say, do you know what installment sales is? It is a sale on credit, and they said, some of them, that there is a price for the credit period. This type of sale, installment sales, is called by some today murabahah. And this is in the category of his saying (peace and blessings be upon him) in some authentic hadiths, they call it by a name other than its name, meaning they call riba murabahah. And perhaps you know that the Muslims today, all the Muslims except those whom Allah protects, and they are few, call riba interest. Do you know this reality?
The questioner: Yes.
The Shaykh : This is what the Muslims have suffered from today; they call forbidden things by names other than their legal names. And that is from the whispering of Satan to the children of Adam and his diverting them from the obedience of the Most Merciful. So the riba about which the Messenger (peace and blessings be upon him) said:, they call it interest. Of this kind is calling the increase for the credit period murabahah, and the Messenger (peace and blessings be upon him) called it riba in the well-known hadith in Sunan Abu Dawud and others, from the Prophet (peace and blessings be upon him) that he said: Sunan Abi Dawud 3461Hasan (Al-Albani), Sunan Abi Dawud 3461Hasan (Al-Albani), meaning he said to the buyer, I sell you this item for such-and-such cash, and for such-and-such on credit. So if he takes the lower price, it is lawful, and if he takes the higher price, he (peace and blessings be upon him) said: . This is what they call today installment sales; some Islamic banks call it murabahah. This is not of murabahah in any way. Rather, I buy for you an item on the condition that I profit you by five percent, and here there is no share or portion for a sale on credit.
Rather, I buy cash for one hundred and profit by five percent, and you pay me cash one hundred and five. These five are lawful, glorious profit. This is the answer regarding murabahah sales. Perhaps it has become clear to you?
The questioner : It has become clear to me, O Shaykh.
The Shaykh : Okay, do you have anything else regarding this specific question?
The questioner : Yes, I tell you, secondly, I have an issue with these banks. In the beginning, the bank is presented with an invoice for goods, then the bank pays the value of the invoice and settles it, then the person pays the installment. This person settles the value of the goods to the bank, adding to it the bank's profit provided for three months.
The Shaykh : May Allah guide you, the answer has preceded regarding this.
The questioner : This is with us, I explain to you this system.
The Shaykh : It does not concern me, my brother, what you have. It does not concern me. It concerns me that you know the legal ruling. This is one of the forms of riba. This is what concerns me. The important thing is, did you understand the legal ruling?
The questioner : I understood the legal ruling, if Allah wills.
The Shaykh : That is enough. On another night, if Allah wills, you will present some of your other questions.
The questioner : Good, if Allah wills.
The Shaykh : And peace be upon you.
The questioner: And upon you peace.
The questioner : We have a system in the banks in Sudan.
The Shaykh : Answer, may Allah bless you, the question and do not prolong it.
The questioner : We do not have what we know, meaning we know that installment sales, which is the initial price, meaning the first price, you increase it.
The Shaykh : This is installment sales, meaning in the old jurisprudential terminology, when they sold on credit, they added a price for the credit period. Do you understand this?
The questioner : I understand.
The Shaykh : Okay, this is what is called installment sales in these lands today.
I sell you this item for such-and-such cash, and for such-and-such on credit, by debt or by installment. This increase is called by some murabahah. Do you understand up to here?
The questioner : I understand, but we have this murabahah in ...
The Shaykh : Listen, my brother, may Allah guide you.
The questioner : I have the second question, not the beginning of the question, O Shaykh.
The Shaykh : Listen, O Shaykh, may Allah guide you, when I finish the answer, and if you ask me, be concise in the answer. So, to ensure that you understand me, I ask you such a question. So I say, do you know what installment sales is? It is a sale on credit, and they said, some of them, that there is a price for the credit period. This type of sale, installment sales, is called by some today murabahah. And this is in the category of his saying (peace and blessings be upon him) in some authentic hadiths, they call it by a name other than its name, meaning they call riba murabahah. And perhaps you know that the Muslims today, all the Muslims except those whom Allah protects, and they are few, call riba interest. Do you know this reality?
The questioner: Yes.
The Shaykh : This is what the Muslims have suffered from today; they call forbidden things by names other than their legal names. And that is from the whispering of Satan to the children of Adam and his diverting them from the obedience of the Most Merciful. So the riba about which the Messenger (peace and blessings be upon him) said:
A dirham of riba that a man consumes is more severe with Allah than thirty-six acts of zina
درهم ربا يأكله الرجل أشد عند الله من ستٍ وثلاثين زنيةIf anyone makes two transactions combined in one bargain, he should have the lesser of the two or it will involve usury.
من باع بيعتين في بيعة فله أوكسهما أو الرباIf anyone makes two transactions combined in one bargain
من باع بيعتين في بيعةThen it is riba
فهو رباRather, I buy cash for one hundred and profit by five percent, and you pay me cash one hundred and five. These five are lawful, glorious profit. This is the answer regarding murabahah sales. Perhaps it has become clear to you?
The questioner : It has become clear to me, O Shaykh.
The Shaykh : Okay, do you have anything else regarding this specific question?
The questioner : Yes, I tell you, secondly, I have an issue with these banks. In the beginning, the bank is presented with an invoice for goods, then the bank pays the value of the invoice and settles it, then the person pays the installment. This person settles the value of the goods to the bank, adding to it the bank's profit provided for three months.
The Shaykh : May Allah guide you, the answer has preceded regarding this.
The questioner : This is with us, I explain to you this system.
The Shaykh : It does not concern me, my brother, what you have. It does not concern me. It concerns me that you know the legal ruling. This is one of the forms of riba. This is what concerns me. The important thing is, did you understand the legal ruling?
The questioner : I understood the legal ruling, if Allah wills.
The Shaykh : That is enough. On another night, if Allah wills, you will present some of your other questions.
The questioner : Good, if Allah wills.
The Shaykh : And peace be upon you.
The questioner: And upon you peace.
Source
www.al-albany.com
The Arabic text is copied verbatim from the original source, without any edits.