Is the agreement between the buyer and the seller to pay the price of the commodity after six months with an increase of two thousand pounds over its original price considered installment sale, or is it a form of circumventing usury?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
If a man buys an item and then agrees with the seller to postpone payment in exchange for an increase in price, this is forbidden usury (riba). However, if he has not yet bought the item, and agrees with the seller to purchase it at a future price higher than its current cash price, this is permissible.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/172998
Where this answer came from
- Source platform
- Ftawy
- Original fatwa ID
- 172998
- Added here
- . This is when the answer was added to El Fatwa, not the fatwa's date.
- Text
- Summary from Ftawy's records, reviewed by El Fatwa's sharia committee.
- Read the full ruling
- Read the full answer on Ftawy