Buying on Installments
Written by: Imran Ayyub Lahori
If the price of an item purchased on installments is the same as its cash price, then it is permissible.
However, if the cash price is lower and the installment price is higher, then it is haram because the increase is due to interest (riba).
The Prophet ﷺ said:
"من باع بيعتين فى بيعة فله أو كسهما أو الربا"
"Whoever makes two sales in one transaction, he gets either the lesser of the two prices, or it will be riba (interest)."
[Hasan: Sahih Abi Dawud: 2955, Kitab al-Buyu‘: Bab fi man ba‘a bay‘atayn fi bay‘ah, Abu Dawud: 3461]
Written by: Imran Ayyub Lahori
Ruling
If the price of an item purchased on installments is the same as its cash price, then it is permissible.
However, if the cash price is lower and the installment price is higher, then it is haram because the increase is due to interest (riba).
Hadith Evidence
The Prophet ﷺ said:
"من باع بيعتين فى بيعة فله أو كسهما أو الربا"
"Whoever makes two sales in one transaction, he gets either the lesser of the two prices, or it will be riba (interest)."
[Hasan: Sahih Abi Dawud: 2955, Kitab al-Buyu‘: Bab fi man ba‘a bay‘atayn fi bay‘ah, Abu Dawud: 3461]
