Is selling by installment or on credit permissible or forbidden, and what are the conditions for selling on credit if it is permissible?
The ruling on selling by installments and deferred payment has been previously explained. Deferred sales are subject to the general conditions of sale, with two additional conditions: the term must be known to avoid dispute, and the contract must not stipulate an increase in price upon delay in payment, as this is usury (riba) and forbidden. As for the negotiation between the two parties on the price of the commodity before the contract, offering one price for immediate payment and another for deferred payment, or different prices for different terms, this is permissible, provided that the contract is concluded on one specific price.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
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- Ftawy
- Original fatwa ID
- 45140
- 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