What is the ruling on selling on credit?
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Question:
Another question is asked, and it says: We go to the Islamic bank so that the bank purchases what we want, such as a car or building materials, or the like. The bank settles the account with the merchant and installs the amount for us, and the bank profits a certain percentage above the regular price. What is the validity of this in Islamic law?
May Allah reward you with good.
Answer:
There is no harm in that. This is selling on credit, selling on a deferred basis. Allah the Exalted says: [Al-Baqarah: 282] And the Prophet (peace and blessings be upon him) said: Jami` at-Tirmidhi 1311Sahih (Darussalam) So, if the Islamic bank purchases the items you need, such as farming tools, cars, or other things, and it buys them, takes possession of them, and they become its property, and then it sells them to you for a deferred price with a specific profit, there is no harm in that. This is because the bank benefits from the profit, and you benefit from the deferral and the relief from paying the immediate price until you fulfill your needs. So, you are benefiting, and it is benefiting. You are benefiting from the delay and the extension of time, and it is benefiting from the profit it imposed on you, which you accepted.
For example, it buys the car for thirty thousand and sells it to you for thirty-five thousand, five thousand per year, or one thousand per month, or the like. There is no harm in all of this, but on the condition that it has taken possession of the item being sold. It does not sell to you from the company. No, it sells something it has, which it has taken possession of, bought, and received. Then it sells it. This is based on the saying of the Prophet (peace and blessings be upon him):Sunan Ibn Majah 2187Hasan (Darussalam) And he (peace and blessings be upon him) said: Sunan an-Nasa'i 4611 So, the bank is not allowed to sell something it does not have. It only sells the thing that it has, which it has taken possession of, owned, bought, and has in its custody. It sells that to you and to others afterwards. Yes.
The presenter: May Allah reward you with good.
Another question is asked, and it says: We go to the Islamic bank so that the bank purchases what we want, such as a car or building materials, or the like. The bank settles the account with the merchant and installs the amount for us, and the bank profits a certain percentage above the regular price. What is the validity of this in Islamic law?
May Allah reward you with good.
Answer:
There is no harm in that. This is selling on credit, selling on a deferred basis. Allah the Exalted says:
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 فَاكْتُبُوهُWhoever pays in advance, then let him pay in advance for known measurements (of dates), and known weights for a specified period of time.
من أسلف فليسلف في كيل معلوم، ووزن معلوم، إلى أجل معلومFor example, it buys the car for thirty thousand and sells it to you for thirty-five thousand, five thousand per year, or one thousand per month, or the like. There is no harm in all of this, but on the condition that it has taken possession of the item being sold. It does not sell to you from the company. No, it sells something it has, which it has taken possession of, bought, and received. Then it sells it. This is based on the saying of the Prophet (peace and blessings be upon him):
Do not sell what is not with you.
لا تبع ما ليس عندكIt was narrated from'Amr bin Shu'aib, from his father that his grandfather, Said: that the Messenger of Allah said: "It is not permissible to lend on the condition of a sale, or to have two conditions in one transaction, or to sell what you do not have." (Sahih
لا يحل سلف ولا بيع، ولا بيع ما ليس عندكThe presenter: May Allah reward you with good.
Source
binbaz.org.sa
The Arabic text is copied verbatim from the original source, without any edits.