Author: Dr. Muhammad Zia-ur-Rahman Azmi (رحمہ الله)
✔ The installments are clearly specified
✔ The duration is fixed and known
This is supported by the Qur’anic command:
"O you who believe! When you contract a debt for a fixed period, write it down."
(Surah Al-Baqarah: 282)
Additionally, the Prophet Muhammad (ﷺ) stated:
"When lending something, it should be for a known quantity, a known weight, and for a fixed period."
(Sunan At-Tirmidhi, Hadith No. 1311)
Furthermore, the incident of Bari’rah (رضي الله عنها) in Sahih al-Bukhari and Sahih Muslim serves as a precedent. She purchased her freedom from her owners for nine ounces of silver, agreeing to pay one ounce annually. The Prophet (ﷺ) approved this transaction and did not prohibit it.
Thus, there is no difference whether the price of the goods is equal to the cash price or higher due to the deferred payment—as long as the transaction is clear and agreed upon from the beginning.
[Ibn Baz: Majmu' al-Fatawa wa al-Maqalat: 19/14]
Permissibility of Credit and Installment Sales with Price Increase
Selling on credit or installments is permissible if it meets the valid conditions of Islamic sales transactions. Likewise, paying in installments is allowed, provided:✔ The installments are clearly specified
✔ The duration is fixed and known
This is supported by the Qur’anic command:
"O you who believe! When you contract a debt for a fixed period, write it down."(Surah Al-Baqarah: 282)
Additionally, the Prophet Muhammad (ﷺ) stated:
"When lending something, it should be for a known quantity, a known weight, and for a fixed period."(Sunan At-Tirmidhi, Hadith No. 1311)
Furthermore, the incident of Bari’rah (رضي الله عنها) in Sahih al-Bukhari and Sahih Muslim serves as a precedent. She purchased her freedom from her owners for nine ounces of silver, agreeing to pay one ounce annually. The Prophet (ﷺ) approved this transaction and did not prohibit it.
Thus, there is no difference whether the price of the goods is equal to the cash price or higher due to the deferred payment—as long as the transaction is clear and agreed upon from the beginning.
[Ibn Baz: Majmu' al-Fatawa wa al-Maqalat: 19/14]