Is dealing considered usurious if the bank sells building materials in annual installments with a profit margin higher than the market price?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
As long as the bank owns the materials and sells them to the customer at a specified price, there is no objection, even if the price is higher than the market price; because deferment has a share in the price. The Islamic Fiqh Academy’s resolution states: "It is permissible to increase the deferred price over the spot price." This is a permissible sales transaction, and Allah has made profit lawful in trade.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/123531
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- Ftawy
- Original fatwa ID
- 123531
- 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