Ruling on installment sales with a specified term

Question:
I have a shop for selling electrical appliances. I used to sell an appliance for cash for one hundred Egyptian pounds, and I sell the appliance on installments over one year for one hundred and fifty pounds. Is installment selling lawful or forbidden? And is installment selling considered like the bank system or not? Please clarify the difference.

Answer:
Selling on credit is permissible in the Shari'ah by the explicit text of the Book and the Sunnah, and some scholars have reported it as a consensus. Allah (Exalted and Majestic is He) clarified this in His great Book, where He said: [al-Baqarah: 282]. Therefore, selling on credit for a specified term or for specified terms is permissible, provided that the item sold is owned by the seller and is in his possession and control. If it is in his possession and control, and he sells it on credit or in installments—meaning the installments—there is no harm. For example, he sells his owned land, or his car which is in his custody, or a building he has, or utensils, or clothes, all of which are in his custody and under his control. He sells them for a specified term: until the entry of Ramadan in the year 1408, or in installments, where each installment is delivered at the beginning of Ramadan in the year eight, and the year nine, and the year ten, and the amount of the installment is such and such thousand riyals, or one hundred riyals. If the installments are known, the terms are known, the price is lawful, the goods are owned and in the seller's possession, and the Shari'ah conditions are met, then there is no harm in that.