Sales of Credit Transactions and Their Rulings

Question:
Regarding this debt that people are currently dealing with, where ten is exchanged for fifteen, ten for fourteen and a half, or ten for thirteen and a half, what is the ruling on it?

Answer:
This matter requires detailed explanation, and we have written a treatise on it...

Question : But is this forbidden or permissible?

Answer: It is written and clarified, detailing the rulings of these credit transactions. It is distributed from the Dar al-Ifta (Department of Fatwa) warehouse. These transactions require detailed analysis, and many people do not have insight into them.
If a person sells a commodity, such as sugar, cars, rice, or something else, after he has taken possession of it, whether it is in his ownership, in his shop, or in his warehouse, and then sells it to another person for a known term, there is no harm. If he sells, for example, sugar, rice, raw materials, or a car that is in his ownership and possession, selling it for a known term or for terms with installments, such as selling a car worth twenty thousand for thirty thousand in installments, for example, one thousand per month, or five hundred riyals per month, or five thousand or six thousand per year, with known terms and known installments, there is no blame. Barira was sold during the time of the Prophet (peace and blessings be upon him); her people sold her for nine awqiyah over nine years, one awqiyah per year, and the awqiyah is forty dirhams. Then Aisha bought her from them and freed her. This is an example of sale by installments.
Likewise, if he has raw material in his shop or in his house, and he sells it for a known term for one thousand riyals, two thousand, ten thousand, fifty thousand, or one hundred thousand, for one known term or for multiple known terms, ten thousand in each term, five thousand in each term, but on the condition that the terms are known and the installments are known, there is no harm. This is based on the saying of Allah (Exalted and Majestic is He): [al-Baqarah: 282]. Thus, He permitted this debt for His servants.
And based on the saying of the Prophet (peace and blessings be upon him) when he arrived in Madinah and people were making forward sales in fruits for one year or two years, he said (peace and blessings be upon him): .
So if the goods are known and the terms are known, there is no harm. As for what some people do, selling the commodity while it is with the merchants (before they have bought it), agreeing with their partner on profits, or on a car (before they have bought it) which is not in their possession, this is not permissible. One does not sell anything unless he has owned it and taken possession of it, so that it is in his ownership, in his shop, in his house, in his courtyard, or in the Muslim market. This is the place of sale. Then the person who bought it from him, the one who bought this commodity intending to sell it, for example, to get married, or to pay off a debt, or to build a house for himself, or something similar, does not have the right to sell this commodity until he takes possession of it. He also, if he buys it from the merchant, does not sell it until he transports it to his place and takes possession of it. This is because it came in the authentic hadith that the Prophet (peace and blessings be upon him) forbade selling goods where they are bought until the merchants take them to their places.
Ibn Umar said: "We used to sell food by estimation to the people of the market, and we would strike it (to move it) until we transported it to our places during the time of the Prophet (peace and blessings be upon him)." In another narration: "Until we transport it from the upper part of the market to the lower part." So it is necessary to take full possession of it from the seller before selling it. Likewise, the buyer must take possession of it from the one who sold it to him.
As for selling it in another sale, each of them must take full and complete possession of it and bring it to his place, and then sell it afterwards. As for selling it while it is with people, with the owners, before he has bought it from them, and then selling it, and then going to buy it, it is established from the Messenger of Allah (peace and blessings be upon him) that Hakim ibn Hizam came to him and said: "O Messenger of Allah, a man comes to me wanting a commodity, and it is not with me, so I sell it, and then I go and buy it." He said: .
And he (peace and blessings be upon him) said: So do not sell to Zayd or 'Amr except something that you have owned and taken from the merchants, receiving it from them... in your house, in your shop, in another place, and then sell it. And whoever buys from you is likewise; if he buys, he does not sell until he also takes possession of it, until he transports it. He does not leave the profits or the like with the merchant, saying "buy it for me," before... No, and may Allah guide them all.