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The question

Is an increase of 5% on the price of an air conditioner when purchased in installments from Jewish companies, and an increase of 1% on each installment when sold to customers in installments, considered a form of usury (riba)? What is the ruling on dealing with usurious banks in Israel? And what is the ruling on what the bank calls "cleaning," which is giving the bank a post-dated check to deposit its value in cash into the account in exchange for a percentage of the check's value?

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Source: FtawySummarized from the full answer at Ftawy · imported Sep 2, 20261 min readAlso available in العربية
The answer

Muslims deal with Jews in buying, selling, and renting, while avoiding forbidden things such as usury (riba) and gambling. Selling in installments with an increase in price compared to cash is permissible, provided that the price is known and that both parties agree on the payment method in the contract. As for selling a check to the bank for less than its value (clearance or debt collection), this is usury and is not permissible.

Summarized from the full answer at Ftawy · imported

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Where this answer came from
Source platform
Ftawy
Original fatwa ID
71991
Imported
Translation status
Source text, unreviewed
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