Does the process of a retail merchant purchasing from agents via the company's application, with the company paying the agent immediately and the amount being repaid by the merchant in installments with a specified interest, constitute usury (riba)?
Source: FtawySummarized from the full answer at Ftawy · imported Sep 2, 2026
It appears that the described installment purchase transaction is Islamically prohibited because its true nature is a loan with interest, which is forbidden usury (riba). It can be rectified by the company purchasing the goods and then selling them on installment to the retail merchant.
Summarized from the full answer at Ftawy · imported
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- Original fatwa ID
- 188070
- Imported
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