Ruling on purchasing goods for a known deferred period with an increase in the price
Machine translationRead the Arabic original
السؤال:
The listener Abu Ahmad from Riyadh sent a question, saying: A person borrowed seeds and fertilizers for a deferred period, at a difference of three riyals per bag compared to the current market price. This period is approximately three months, and he gave the owners of the goods a check for the amount, deferred until the time of payment. Is this considered riba?
Answer:
Purchasing goods for a known deferred period in installments that exceed the current price is permissible. This is the nature of debt; because debt is not cash, the one who buys on credit pays a higher value. A person buys on credit when he is unable to pay in cash, and a person sells on credit for the sake of profit. There is no harm in that if he sells what is worth thirty for forty or fifty, paid in installments over known periods. There is no harm in that.
Likewise, if he gives them a check for it at their due times, all of that is permissible. Here is the lawful credit mentioned in the saying of the Exalted: [al-Baqarah:282]. And the Prophet (peace and blessings be upon him) bought on credit, and he died with his armor pledged for food for his family (peace and blessings be upon him). There is no harm in that. Yes.
The presenter : May Allah reward you with good. What if the check itself is deferred?
The Shaykh : The date of the invoice is specified; it is converted on such-and-such day and such-and-such month, there is no harm...
The presenter : May Allah reward you with good, and may He do you good.
The listener Abu Ahmad from Riyadh sent a question, saying: A person borrowed seeds and fertilizers for a deferred period, at a difference of three riyals per bag compared to the current market price. This period is approximately three months, and he gave the owners of the goods a check for the amount, deferred until the time of payment. Is this considered riba?
Answer:
Purchasing goods for a known deferred period in installments that exceed the current price is permissible. This is the nature of debt; because debt is not cash, the one who buys on credit pays a higher value. A person buys on credit when he is unable to pay in cash, and a person sells on credit for the sake of profit. There is no harm in that if he sells what is worth thirty for forty or fifty, paid in installments over known periods. There is no harm in that.
Likewise, if he gives them a check for it at their due times, all of that is permissible. Here is the lawful credit mentioned in the saying of the Exalted:
O you who have believed, when you contract a debt for a specified term, write it down.
يَا أَيُّهَا الَّذِينَ آمَنُوا إِذَا تَدَايَنتُمْ بِدَيْنٍ إِلَى أَجَلٍ مُسَمًّى فَاكْتُبُوهُThe presenter : May Allah reward you with good. What if the check itself is deferred?
The Shaykh : The date of the invoice is specified; it is converted on such-and-such day and such-and-such month, there is no harm...
The presenter : May Allah reward you with good, and may He do you good.
Source
binbaz.org.sa
The Arabic text is copied verbatim from the original source, without any edits.