Ruling on selling on credit with an increase in the price
Machine translationRead the Arabic original
Question:
The first message in this episode is from listener Ibrahim Abdullah. Brother Ibrahim asks and says: A man bought a camel for one thousand Egyptian pounds and sold it to another man for a specific month in the year, such as six months, for one thousand two hundred Egyptian pounds, even though the price of the camel is only one thousand Egyptian pounds. The increase is because he waited. Is this sale riba, or is it permissible? May Allah reward you with good.
Answer:
In the name of Allah, the Most Gracious, the Most Merciful. Praise be to Allah, and may Allah send prayers and blessings upon the Messenger of Allah, and upon his family and his Companions, and upon those who follow his guidance. As for what follows:
There is no harm in this sale and its like, and there is nothing wrong with it, provided that the seller has taken possession of the camel, secured it, and it is in his control, and then he sells it for a specified term with an increase. There is no harm in that, due to the generality of His saying (Exalted and Majestic is He): [al-Baqarah:282] and the generality of His saying (Glorified is He): [al-Baqarah:275]. This is lawful sale, namely: installment sale. Barirah was sold on installment during the time of the Prophet (peace and blessings be upon him). Her owner sold her for nine ounces of gold, paid in installments, one ounce each year. So, selling on installment for a term has no harm, provided that the seller has taken possession of the item sold, it is in his control and custody, and then he sells it in installments for more than its price. There is no harm in that. Yes.
The presenter : May Allah bless you, may Allah reward you with good. It is observed that this is not an installment sale, O Shaykh, but rather after a year, for example...
The Shaykh : Yes, this is a sale for a term.
The presenter : For a term?
The Shaykh : Yes.
The presenter : So there is no riba in it?
The Shaykh : There is no harm in selling it for more than its current price. It is sold for more because a sale for a term is not the same as a current sale. Cash has its status, and a term has its status. So the seller benefits from the extra profit, and the buyer benefits from the time allowed and from the item sold.
The presenter : May Allah reward you with good, and may He do you good.
The first message in this episode is from listener Ibrahim Abdullah. Brother Ibrahim asks and says: A man bought a camel for one thousand Egyptian pounds and sold it to another man for a specific month in the year, such as six months, for one thousand two hundred Egyptian pounds, even though the price of the camel is only one thousand Egyptian pounds. The increase is because he waited. Is this sale riba, or is it permissible? May Allah reward you with good.
Answer:
In the name of Allah, the Most Gracious, the Most Merciful. Praise be to Allah, and may Allah send prayers and blessings upon the Messenger of Allah, and upon his family and his Companions, and upon those who follow his guidance. As for what follows:
There is no harm in this sale and its like, and there is nothing wrong with it, provided that the seller has taken possession of the camel, secured it, and it is in his control, and then he sells it for a specified term with an increase. There is no harm in that, due to the generality of His saying (Exalted and Majestic is He):
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 فَاكْتُبُوهُBut Allah has permitted trade and has forbidden interest
وَأَحَلَّ اللَّهُ الْبَيْعَ وَحَرَّمَ الرِّبَاThe presenter : May Allah bless you, may Allah reward you with good. It is observed that this is not an installment sale, O Shaykh, but rather after a year, for example...
The Shaykh : Yes, this is a sale for a term.
The presenter : For a term?
The Shaykh : Yes.
The presenter : So there is no riba in it?
The Shaykh : There is no harm in selling it for more than its current price. It is sold for more because a sale for a term is not the same as a current sale. Cash has its status, and a term has its status. So the seller benefits from the extra profit, and the buyer benefits from the time allowed and from the item sold.
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.