Is it permissible to sell by installments with an increase in the price of the commodity?

Installment sale is a type of sale where the sold item is delivered immediately, and the price is paid later in known installments. This type of sale became widespread after World War II, especially with banking transactions. Islamic texts have indicated the permissibility of deferred payment sales, such as delaying the price. There is no difference between deferring the price for a single term or for multiple terms, as in the Hadith of Aisha (may Allah be pleased with her) regarding the manumission of Barira.

Scholars have differed on the ruling concerning increasing the price due to deferment. A minority of them deemed it forbidden, arguing that it is usury (riba), while the majority of scholars, including the four Imams, considered it permissible. They based their arguments on the Almighty's saying: "Allah has permitted trade" and "but [only] as a trade by mutual consent from you." They also cited the Hadith of Salam (forward buying), which indicates that the deferment has a share in the price, and the consensus and practice of Muslims on the permissibility of increasing the price in exchange for deferment. Sheikh Ibn Baz issued a fatwa allowing this transaction, arguing that cash sale differs from deferred payment, that Muslims have practiced this type of sale by consensus, that the increase in price due to deferment is not considered usury, and that this transaction falls under the general meaning of the Almighty's saying: "O you who have believed, when you contract a debt for a specified term, write it down."