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What is the ruling on increasing the price of feed when purchasing it on credit instead of with cash, knowing that the office shares in both profit and loss?

1 min readAlso available in العربية

Purchasing feed through a financing office takes two forms:

The first: The office buys the feed, then takes possession of it and moves it from the place where it was purchased. Then, it sells it to you on credit. There is no objection to this, and it is called Murabaha sale for one who commands to purchase. The conditions for this are: first, the office buys the feed for itself; second, it takes possession and acquires it, moving it from the premises; and third, it sells it to you. The evidence for this is the Prophet's (peace be upon him) prohibition of selling what has been bought until it is taken possession of, and of selling goods where they are bought until merchants acquire them and move them to their own places.

The second: The office neither buys nor sells; rather, its role is limited to financing, meaning it pays the price on your behalf and then recovers it from you with an increase. This is an interest-based, usurious loan, and its prohibition is a matter of scholarly consensus. If the transaction is of the second form, then repentance is obligatory, along with abandoning it and not returning to it in the future, because provision is decreed, and it should not be sought through unlawful means.

Summarized from the full answer at Ftawy · reviewed Sep 2, 2026

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