{"id":32121,"date":"2024-08-11T14:22:44","date_gmt":"2024-08-11T14:22:44","guid":{"rendered":"http:\/\/daruliftabirmingham.co.uk\/home\/?p=32121"},"modified":"2024-08-11T14:22:44","modified_gmt":"2024-08-11T14:22:44","slug":"can-i-provide-zero-percent-finance-to-my-customers-for-bathroom-sales","status":"publish","type":"post","link":"https:\/\/daruliftabirmingham.co.uk\/home\/can-i-provide-zero-percent-finance-to-my-customers-for-bathroom-sales\/","title":{"rendered":"Can I Provide Zero Percent Finance to My Customers for Bathroom Sales?"},"content":{"rendered":"

Fatwa ID: 07370<\/strong><\/span><\/p>\n

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Answered by: Mufti Mohammed Dilwar Hussain<\/b><\/span><\/p>\n

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Question:<\/b><\/u><\/span><\/p>\n

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Can I provide zero percent finance to my customers for bathroom sales.<\/span><\/p>\n

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I will be charged 20% of order value fee from finance company for this service.<\/span><\/p>\n

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Is this ok ?<\/span><\/p>\n

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In the name of <\/strong><\/u>All<\/strong><\/u><\/em>\u0101<\/strong><\/u><\/em>h<\/strong><\/u><\/em>, the Most Gracious, the Most Merciful<\/strong><\/u><\/span><\/p>\n

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Answer:<\/strong><\/u><\/span><\/p>\n

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A sale is described as a transaction where both the buyer and seller agree to the exchange (i.e., it is concluded upon mutual consent). One party makes an offer and the offer accepts it. [Al-Bin\u0101yah: vol. 7, pg. 8<\/em>] [1]<\/span><\/p>\n

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From what you have explained above, it appears that there are two separate transactions taking place. The first transaction is between yourself (the shopkeeper) and the finance company whereby you have come to an arrangement with them for them to provide finance to your customer at no cost to them and they charge you a fee of 20% for the service that they are providing.<\/span><\/p>\n

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Thus, there appears to be no implications of Riba<\/em> (usury\/interest). Riba<\/em> is strictly prohibited. Thus, any action which goes close to it should be avoiding as a precautionary measure.<\/span><\/p>\n

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All\u0101h Ta\u2019\u0101l\u0101 <\/em>has said, \u201cO you who have believed, fear All\u0101h <\/em>and give up what remains (due to you) of interest, if you should be believers. And if you do not, then be informed of a war (against you) from All\u0101h <\/em>and His Messenger. But if you repent, you may have your principal \u2013 (thus) you do no wrong, nor are you wronged.\u201d [Surah Al-Baqarah<\/em>; 2:278-279] [2]<\/span><\/p>\n

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If the transaction between the customer and the financier is as you describe it to be, then there is no issue there. The financier is providing a loan to the customer for them to repay it instalments over an agreed upon time frame and set amount. This would be the second transaction.<\/span><\/p>\n

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Based on the limited information provided above, both transactions appear to be above board.<\/span><\/p>\n

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Project Financing using Istisna<\/em> \u2013 istisna<\/em> is a contract where a party, in this case the shop, undertakes to produce the bathroom requested by the customer at a pre-agreed price, a specific date of delivery, and with specific details pertaining to the work. In project financing, this also involves another agreement made by the shop with the financier. The shop charges the buyer the price it pays to the manufacturer and financier plus a reasonable profit. [Fundamentals of Islamic Banking and Finance: pg. 65] [3]<\/span><\/p>\n

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His is also another method which could be utilised.<\/span><\/p>\n

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Only All\u0101h Ta\u2019\u0101l\u0101 <\/em>knows best.<\/span><\/p>\n

Written by Mufti Mohammed Dilwar Hussain<\/span><\/p>\n

Checked and approved by Mufti Mohammed Tosir Miah<\/span><\/p>\n

Darul Ifta Birmingham<\/span><\/p>\n

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[1]\u0642\u0627\u0644 \u0627\u0644\u0628\u064a\u0639 \u064a\u0646\u0639\u0642\u062f \u0628\u0627\u0644\u0625\u064a\u062c\u0627\u0628 \u0648\u0627\u0644\u0642\u0628\u0648\u0644 \u0625\u0630\u0627 \u0643\u0627\u0646 \u0628\u0644\u0641\u0638 \u0627\u0644\u0645\u0627\u0636\u064a \u0645\u062b\u0644 \u0623\u0646 \u064a\u0642\u0648\u0644 \u0623\u062d\u062f\u0647\u0645\u0627 \u0628\u0639\u062a \u0648\u0627\u0644\u0622\u062e\u0631 \u0627\u0634\u062a\u0631\u064a\u062a<\/span><\/p>\n

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[2]\u064a\u064e\u0670\u0653\u0623\u064e\u064a\u0651\u064f\u0647\u064e\u0627 \u0671\u0644\u0651\u064e\u0630\u0650\u064a\u0646\u064e \u0621\u064e\u0627\u0645\u064e\u0646\u064f\u0648\u0627\u0652 \u0671\u062a\u0651\u064e\u0642\u064f\u0648\u0627\u0652 \u0671\u0644\u0644\u0651\u064e\u0647\u064e \u0648\u064e\u0630\u064e\u0631\u064f\u0648\u0627\u0652 \u0645\u064e\u0627 \u0628\u064e\u0642\u0650\u064a\u064e \u0645\u0650\u0646\u064e \u0671\u0644\u0631\u0651\u0650\u0628\u064e\u0648\u0670\u0653\u0627\u0652 \u0625\u0650\u0646 \u0643\u064f\u0646\u062a\u064f\u0645 \u0645\u0651\u064f\u0624\u06e1\u0645\u0650\u0646\u0650\u064a\u0646\u064e. \u0641\u064e\u0625\u0650\u0646 \u0644\u0651\u064e\u0645\u06e1 \u062a\u064e\u0641\u06e1\u0639\u064e\u0644\u064f\u0648\u0627\u0652 \u0641\u064e\u0623\u06e1\u0630\u064e\u0646\u064f\u0648\u0627\u0652 \u0628\u0650\u062d\u064e\u0631\u06e1\u0628 \u0645\u0651\u0650\u0646\u064e \u0671\u0644\u0644\u0651\u064e\u0647\u0650 \u0648\u064e\u0631\u064e\u0633\u064f\u0648\u0644\u0650\u0647\u0650\u06e6\u06d6 \u0648\u064e\u0625\u0650\u0646 \u062a\u064f\u0628\u06e1\u062a\u064f\u0645\u06e1 \u0641\u064e\u0644\u064e\u0643\u064f\u0645\u06e1 \u0631\u064f\u0621\u064f\u0648\u0633\u064f \u0623\u064e\u0645\u06e1\u0648\u064e\u0670\u0644\u0650\u0643\u064f\u0645\u06e1 \u0644\u064e\u0627 \u062a\u064e\u0638\u06e1\u0644\u0650\u0645\u064f\u0648\u0646\u064e \u0648\u064e\u0644\u064e\u0627 \u062a\u064f\u0638\u06e1\u0644\u064e\u0645\u064f\u0648\u0646\u064e{.<\/span><\/p>\n

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[3] This book has been published by the Chartered Institute of Securities & Investment (2022) and by Bahrain Institute of Banking & Finance (2022). Written by Dr. Shaban Mohamed Barwari<\/span><\/p>\n

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