Is the Difference Between Cash and Credit Price Considered Interest? – Complete Fatwa
Source: Fatāwā ʿIlmiyyah (Tawḍīḥ al-Aḥkām), Vol. 2, p. 220
Does setting different prices for the same item when sold for cash and on credit fall under the category of interest (ribā)?
Al-ḥamdu lillāh, waṣ-ṣalātu wa-s-salāmu ʿalā Rasūlillāh, ʿAmma Baʿd!
In the opinion of the author, differentiating between cash and credit prices is ribā (interest) and is impermissible.
For further detail, refer to:
◈ Shahādat, July 2003, Vol. 10, No. 7
◈ Shahādat, Vol. 6, No. 5, p. 30, May 1999
Although some scholars consider this practice permissible, the correct and stronger view is that such a transaction is invalid and amounts to interest.
Imām al-Bayhaqī رحمه الله reports:
"A loan which brings a benefit is one of the forms of ribā."
Arabic text:
«کل قرض جو منفعة فهو وجه من وجوہ الربا / موقوف»
This narration is mauqūf (a statement of a Companion) and is from Faḍālah ibn ʿUbayd رضي الله عنه, a Companion of the Prophet ﷺ.
(Al-Sunan al-Kubrā 5/350)
The chain of this narration is ṣaḥīḥ or ḥasan li-dhātihi.
Also see:
◈ Bulūgh al-Marām (ḥadīth no. 726, with my verification)
◈ And note: those who declared this report weak were mistaken.
ھٰذَا مَا عِندِي وَاللّٰهُ أَعْلَمُ بِالصَّوَابِ
Source: Fatāwā ʿIlmiyyah (Tawḍīḥ al-Aḥkām), Vol. 2, p. 220
Question:
Does setting different prices for the same item when sold for cash and on credit fall under the category of interest (ribā)?
Answer:
Al-ḥamdu lillāh, waṣ-ṣalātu wa-s-salāmu ʿalā Rasūlillāh, ʿAmma Baʿd!
In the opinion of the author, differentiating between cash and credit prices is ribā (interest) and is impermissible.
For further detail, refer to:
◈ Shahādat, July 2003, Vol. 10, No. 7
◈ Shahādat, Vol. 6, No. 5, p. 30, May 1999
Although some scholars consider this practice permissible, the correct and stronger view is that such a transaction is invalid and amounts to interest.
Statement of Imām al-Bayhaqī رحمه الله
Imām al-Bayhaqī رحمه الله reports:
"A loan which brings a benefit is one of the forms of ribā."
Arabic text:
«کل قرض جو منفعة فهو وجه من وجوہ الربا / موقوف»
This narration is mauqūf (a statement of a Companion) and is from Faḍālah ibn ʿUbayd رضي الله عنه, a Companion of the Prophet ﷺ.
(Al-Sunan al-Kubrā 5/350)
Authenticity of the Report
The chain of this narration is ṣaḥīḥ or ḥasan li-dhātihi.
Also see:
◈ Bulūgh al-Marām (ḥadīth no. 726, with my verification)
◈ And note: those who declared this report weak were mistaken.
ھٰذَا مَا عِندِي وَاللّٰهُ أَعْلَمُ بِالصَّوَابِ
