Written by: Abu al-Hasan Mubashir Ahmad Rabbani (رحمه الله)
"A time will come upon the people when a man will not care about how he gains his money, whether from lawful or unlawful sources."
(Ṣaḥīḥ al-Bukhārī: 2059)
In another Hadith:
"Rush to do righteous deeds before trials come like pieces of a dark night, wherein a man will wake up a believer and go to bed a disbeliever, or go to bed a believer and wake up a disbeliever; he will sell his religion for a portion of worldly goods."
(Ṣaḥīḥ Muslim: 118, Dār al-Salām: 313)
"No flesh that has been nourished by unlawful means will enter Paradise; the Fire is more worthy of it."
(Musnad Ahmad 3/299, 327, graded ḥasan; Ibn Ḥibbān, al-Mawārid: 1569)
❀ Furthermore, the Prophet (ﷺ) described the condition of a man who, despite being in desperate need and raising his hands to the heavens for du‘ā’, has his prayers rejected because:
"His food is unlawful, his drink is unlawful, his clothing is unlawful, and he has been nourished unlawfully; how then can his supplication be accepted?"
(Ṣaḥīḥ Muslim: 1015, Dār al-Salām: 2346)
"O you who have believed, fear Allah and give up what remains [due to you] of interest, if you should be believers. And if you do not, then be informed of a war [against you] from Allah and His Messenger."
(Sūrat al-Baqarah: 278–279)
❀ Sayyiduna Jābir (رضي الله عنه) narrated that the Messenger of Allah (ﷺ) cursed:
"The one who consumes interest, the one who gives it, the one who records it, and the two witnesses to it," and said: "They are all equal [in sin]."
(Ṣaḥīḥ Muslim: 1598)
➔ This additional two thousand rupees over the original debt is pure interest (ribā), and hence prohibited.
➔ According to the Prophet (ﷺ):
"Ribā (interest) occurs in credit-based transactions."
(Ṣaḥīḥ al-Bukhārī: 2179; Ṣaḥīḥ Muslim: 596)
Many contemporary scholars attempt to justify modern installment sales with various arguments such as:
Islam permits trade, but forbids interest.
It is unlawful to sell an item on installment with a higher price than its cash value if the only reason for the increased price is delayed payment.
True facilitation would involve offering installment payments without inflating the price, thereby ensuring compliance with Shariah.
May Allah (ﷻ) guide us to earn and spend through lawful means, protect us from the traps of ribā, and accept our deeds. Āmīn.
Condemnation of Forbidden Activities
❀ Narrated by Sayyiduna Abu Hurairah (رضي الله عنه), the Messenger of Allah (ﷺ) said:"A time will come upon the people when a man will not care about how he gains his money, whether from lawful or unlawful sources."
(Ṣaḥīḥ al-Bukhārī: 2059)
In another Hadith:
"Rush to do righteous deeds before trials come like pieces of a dark night, wherein a man will wake up a believer and go to bed a disbeliever, or go to bed a believer and wake up a disbeliever; he will sell his religion for a portion of worldly goods."
(Ṣaḥīḥ Muslim: 118, Dār al-Salām: 313)
Severe Warning for Consuming Unlawful Earnings
❀ The Messenger of Allah (ﷺ) said:"No flesh that has been nourished by unlawful means will enter Paradise; the Fire is more worthy of it."
(Musnad Ahmad 3/299, 327, graded ḥasan; Ibn Ḥibbān, al-Mawārid: 1569)
❀ Furthermore, the Prophet (ﷺ) described the condition of a man who, despite being in desperate need and raising his hands to the heavens for du‘ā’, has his prayers rejected because:
"His food is unlawful, his drink is unlawful, his clothing is unlawful, and he has been nourished unlawfully; how then can his supplication be accepted?"
(Ṣaḥīḥ Muslim: 1015, Dār al-Salām: 2346)
The Prohibition of Interest (Ribā)
❀ Allah (ﷻ) commands:"O you who have believed, fear Allah and give up what remains [due to you] of interest, if you should be believers. And if you do not, then be informed of a war [against you] from Allah and His Messenger."
(Sūrat al-Baqarah: 278–279)
❀ Sayyiduna Jābir (رضي الله عنه) narrated that the Messenger of Allah (ﷺ) cursed:
"The one who consumes interest, the one who gives it, the one who records it, and the two witnesses to it," and said: "They are all equal [in sin]."
(Ṣaḥīḥ Muslim: 1598)
Installments and the Reality of Contemporary Trade
Today, installment sales have become widespread. Items like fans, washing machines, refrigerators, televisions, and vehicles are sold on easy installments. However, the cash price and the installment price differ significantly. For example, an item that costs ten thousand rupees in cash is sold for twelve thousand on installments.➔ This additional two thousand rupees over the original debt is pure interest (ribā), and hence prohibited.
➔ According to the Prophet (ﷺ):
"Ribā (interest) occurs in credit-based transactions."
(Ṣaḥīḥ al-Bukhārī: 2179; Ṣaḥīḥ Muslim: 596)
Clarifications Based on Hadith and the Opinions of Scholars
- Selling the same item at two different prices — one for cash and another for credit — is forbidden as explained by Sayyiduna ‘Abdullāh ibn Mas‘ūd (رضي الله عنه) and other Companions.
- Hadith evidence:"If a person sells on two different terms within a single sale, he must accept the lower price or else he falls into interest."(Sunan Abī Dāwūd: 3461; graded ḥasan)
Common Doubts Addressed
Many contemporary scholars attempt to justify modern installment sales with various arguments such as:- "Facilitating ease for the masses" – However, Islam commands lawful facilitation, not one that involves interest.
- "Original permissibility of trade" – But specific evidence prohibits increasing prices due to delay in payment.
- "Drawing analogies with Salam (forward sales)" – This is invalid because Salam is explicitly permitted with strict conditions, unlike interest-based sales.
- "Risk-bearing by the seller" – Yet, Islam forbids earning extra merely for waiting or risk-bearing without valid trade.
Conclusion
Islam permits trade, but forbids interest. It is unlawful to sell an item on installment with a higher price than its cash value if the only reason for the increased price is delayed payment. True facilitation would involve offering installment payments without inflating the price, thereby ensuring compliance with Shariah.May Allah (ﷻ) guide us to earn and spend through lawful means, protect us from the traps of ribā, and accept our deeds. Āmīn.
