The Criterion for Increasing the Price Due to the Term
Machine translationRead the Arabic original
Question:
Are there any Shari'ah criteria that intervene to determine the value of the interest, or the profit of the installment partnership?
Answer:
It was previously mentioned that increasing the price due to the term and the deadline is permissible, and there is no text in the Shari'ah specifying the amount of this increase. This increase is governed by considerations, including: the length or shortness of the period, the risk of trade, and the activity of commercial movement, which is expressed as the phenomenon of supply and demand. As supply increases and demand decreases, the rate of profit decreases, and as supply decreases and demand increases, this rate rises. It varies due to other causes as well.
Are there any Shari'ah criteria that intervene to determine the value of the interest, or the profit of the installment partnership?
Answer:
It was previously mentioned that increasing the price due to the term and the deadline is permissible, and there is no text in the Shari'ah specifying the amount of this increase. This increase is governed by considerations, including: the length or shortness of the period, the risk of trade, and the activity of commercial movement, which is expressed as the phenomenon of supply and demand. As supply increases and demand decreases, the rate of profit decreases, and as supply decreases and demand increases, this rate rises. It varies due to other causes as well.
Source
binbaz.org.sa
The Arabic text is copied verbatim from the original source, without any edits.