Paying through Instalments

CategoriesTrade, Business & All Things Money [558]

Paying through Instalments

 In the name of Allah, the most Beneficent, the most Merciful.


It is permissible to purchase items on deferred payment and also on a fixed number instalments at determined times, with a price higher than the cash price. If at the time of agreement a price is fixed in a way that it does not change, then this is permissible. This also includes the seller considering the interest rate and charging the combined price. (, Mufti Mufti Muhammad ibn Adam al-Kawthari)

Imam Kasani (RA) has written “The price may be raised in return for delaying payment.” (Badaaius Sanaai p.187 v.5)

Furthermore, the Prophet of Allah Sallallahu Alahi Wasalam ordered Saaiduna Amr bin Aas Radiallahu Anhu to equip an army, so Amr would buy a camel for the price of two due to the payment being in instalments. (Mustadrak Hakim & Sunan Baihaqi)

The conclusion we can come to is that it is permissible to purchase items on instalments even though it may be expensive than the cost price as long as the price is fixed in a why that it does not change.

Only Allah Knows Best

Mohammed Tosir Miah

Darul Ifta Birmingham.

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