Islamic Guidance on Haram Installment Business and Your Role
Source: Aḥkām wa Masā’il, Issues of Buying and Selling, Vol. 1, p. 372
I am about 16 years old and a matric student. We are four brothers, and my father works in WAPDA. My two elder brothers have started a business of buying and selling on easy installments. My father goes on government duty at night and stays at the shop during the day.
I want to know, in the light of Qur’an and Ḥadīth, what should I do in this situation, since installment business is a source of ḥarām income, and my brothers are not willing to leave this business at all. What should be my reaction in this matter?
Al-ḥamdu lillāh, waṣ-ṣalātu was-salāmu ‘alā Rasūlillāh, ammā ba‘d!
❀ Permissible Case:
If the price of an item is the same as the cash price, and the same price is taken on deferred payment either in lump sum or in installments, then such a business is permissible—provided no other Shar‘i violations are involved.
❀ Prohibited Case:
If the price of an item is increased beyond its cash price simply because it is sold on deferred payment (lump sum or installments), then this falls under ribā (interest), and it is impermissible and ḥarām.
❀ Advise your father gently and wisely to adjust the business according to the first (permissible) method.
❀ In shā’ Allāh, he will understand and adopt the Shar‘i method, which will ensure:
◈ Protection from sin.
◈ Continuation of the business.
◈ Increased wealth through ḥalāl means.
❀ When business is conducted in a ḥalāl and permissible way:
◈ The number of buyers increases.
◈ More goods are sold.
◈ Profit also increases accordingly.
ھذا ما عندي والله أعلم بالصواب
Source: Aḥkām wa Masā’il, Issues of Buying and Selling, Vol. 1, p. 372
❖ Question:
I am about 16 years old and a matric student. We are four brothers, and my father works in WAPDA. My two elder brothers have started a business of buying and selling on easy installments. My father goes on government duty at night and stays at the shop during the day.
I want to know, in the light of Qur’an and Ḥadīth, what should I do in this situation, since installment business is a source of ḥarām income, and my brothers are not willing to leave this business at all. What should be my reaction in this matter?
❖ Answer:
Al-ḥamdu lillāh, waṣ-ṣalātu was-salāmu ‘alā Rasūlillāh, ammā ba‘d!
✔ Shar‘i Ruling on Installment Business:
❀ Permissible Case:
If the price of an item is the same as the cash price, and the same price is taken on deferred payment either in lump sum or in installments, then such a business is permissible—provided no other Shar‘i violations are involved.
❀ Prohibited Case:
If the price of an item is increased beyond its cash price simply because it is sold on deferred payment (lump sum or installments), then this falls under ribā (interest), and it is impermissible and ḥarām.
✔ Guidance for You:
❀ Advise your father gently and wisely to adjust the business according to the first (permissible) method.
❀ In shā’ Allāh, he will understand and adopt the Shar‘i method, which will ensure:
◈ Protection from sin.
◈ Continuation of the business.
◈ Increased wealth through ḥalāl means.
❀ When business is conducted in a ḥalāl and permissible way:
◈ The number of buyers increases.
◈ More goods are sold.
◈ Profit also increases accordingly.
ھذا ما عندي والله أعلم بالصواب
