Bank interest on installments
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Question:
Some banks take a percentage on the installments of debts incurred from purchasing goods on credit, taking a percentage each month. What is the ruling on that?
Answer:
Answer: If the banks sell goods to people for a deferred price that is higher than the cash price, there is nothing wrong with that; but if they give them money to buy whatever goods they want and then recover that money with an increase, that is riba, explicit riba.
Some banks take a percentage on the installments of debts incurred from purchasing goods on credit, taking a percentage each month. What is the ruling on that?
Answer:
Answer: If the banks sell goods to people for a deferred price that is higher than the cash price, there is nothing wrong with that; but if they give them money to buy whatever goods they want and then recover that money with an increase, that is riba, explicit riba.
Source
www.alfawzan.af.org.sa
The Arabic text is copied verbatim from the original source, without any edits.