Is installment sales with an increase in the price of the goods riba?
Machine translationRead the Arabic original
Question:
This is a questioner for the program. He says, “May the Shaykh Abu Muhammad be respected, in this question: Is installment sales with an increase in the price of the goods riba? Or not?”
Answer:
There is no harm in installment sales; it is permissible. If the item is worth forty in cash, and he sells it for sixty in installments, five thousand each month, or five thousand each year, there is nothing wrong with this. Barirah (may Allah be pleased with her) was sold in installments. She was sold for nine awqiyah, one awqiyah each year, forty dirhams. Aisha bought her for cash. So there is nothing wrong with installments, and it provides relief for people. If one sells a house, a car, or something else in installments, there is no harm in it, provided that the installments are known and the terms are known. There is no harm in that.
The presenter: May Allah reward you and bless you.
This is a questioner for the program. He says, “May the Shaykh Abu Muhammad be respected, in this question: Is installment sales with an increase in the price of the goods riba? Or not?”
Answer:
There is no harm in installment sales; it is permissible. If the item is worth forty in cash, and he sells it for sixty in installments, five thousand each month, or five thousand each year, there is nothing wrong with this. Barirah (may Allah be pleased with her) was sold in installments. She was sold for nine awqiyah, one awqiyah each year, forty dirhams. Aisha bought her for cash. So there is nothing wrong with installments, and it provides relief for people. If one sells a house, a car, or something else in installments, there is no harm in it, provided that the installments are known and the terms are known. There is no harm in that.
The presenter: May Allah reward you and bless you.
Source
binbaz.org.sa
The Arabic text is copied verbatim from the original source, without any edits.