Paying through installments

Question:

What’s the ruling on purchasing through installments?

Is this permissible or is this considered usury, bearing in mind that the price for buying in instalments is more?

For example when purchasing a battery which usually costs 30,000, and purchasing it through instalments with 60,000, what’s the ruling of this?

Answer:

The ‘Allāmah Ibn Bāz, may Allah have mercy upon him, was asked:

Cars which are bought through installments, whereby the car prise cash is 25,000 cash but it’s sold for more than this price through instalments.

Is this sale Usury?

Whereby he, may Allah have mercy upon him, replied:

“There is no harm in sales through installments, if it was for a set time and set payments

Even if the sale through installments cost more than cash payments, the buyer is benefiting from the extension.

And it has been authentically narrated in the two ‘Sahihs‘ on the authority of ‘Aaisha, that Bariyrah’s, may Allah be pleased with them both, family sold her through instalments extending nine years, for 40 Dirhams each year.

So this points that sales by way of instalments is permissible, because it is a sale with:

➖No deception
➖Nor any Usury
➖Nor any uncertainty or ignorance

making it permissible like the rest of the legislated sales when the commodity is owned by the seller in his possession at the sale.”

[End of speech]

Answered by:
Shaykh Abu Hatim Yusuf Al-‘Inaabi Al-Jazaa’iree – may Allah preserve him.

Source:
t.me/abouhatem/180

Answered on:
24th, Rabee’ Al-Awwal, 1438H

Translated by:
Abu ‘Abdirrahman ‘Abdullaah bin Ahmed Ash-Shingaani