Is purchasing goods in installments from commercial companies at the same cash price considered usury, given that monthly payments are made to the bank, and fines are imposed for delays, and that the amount is paid from the monthly salary account without delay?
This transaction is usurious (Riba-based); it is impermissible to enter into it or to acknowledge it. Merely acknowledging and signing a usurious condition is forbidden. Imposing a fine for late payment is a form of forbidden usury. The Islamic Fiqh Academy has unanimously resolved that a creditor’s stipulation of a financial penalty against a debtor for delayed payment is a void and forbidden condition, because it is the usury of the pre-Islamic era (Jahiliyyah) that was prohibited by the Qur’an.
Summarized from the full answer at Ftawy · reviewed Sep 2, 2026
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