Is a 23% price increase in an installment purchase transaction considered usury (riba) or permissible (halal)?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
It is permissible to sell goods by installment at a price higher than their cash price because time has a share in the price, provided that the payment method (installment or cash) is specified before the contract, that the item sold is permissible and owned by the seller, and that the installments are known and the term is specified, as Allah the Almighty says: "O you who have believed, when you contract a debt for a specified term, write it down." [Quran 2:282] And due to the well-established story of Barirah in the Two Sahihs.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/58680
Where this answer came from
- Source platform
- Ftawy
- Original fatwa ID
- 58680
- 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