What is the ruling on deferred-payment sales with an increase in price compared to cash sales, what justifies this increase, and what is the meaning of the prohibition of "a sale and a loan"?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
The Islamic Fiqh Academy has permitted installment sales with an increase in the deferred price over the spot price. This is not considered usury (riba) because time has a share in the price, so the increase in price in exchange for deferment is not usury; rather, it is the sale of goods at different values depending on the term. The Prophet, peace and blessings be upon him, forbade combining a sale and a loan because the buyer stipulates the loan in order to increase the price, making the increase a profit for the loan, and this is forbidden usury.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
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- Ftawy
- Original fatwa ID
- 69821
- Added here
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- Text
- Summary from Ftawy's records, reviewed by El Fatwa's sharia committee.
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