Fatwa ID: 09382
Answered by Muftiyah Humairah Badshah
Question:
Hello,
I live in the UK and I use an app called Zilch to buy groceries.
The system works like this:
If I buy something for example £40, I pay a fixed fee of about £3.25 at the time of purchase, then the rest is divided into 3 equal instalments over 6 weeks. The total amount is fixed from the beginning and does not increase if I pay on time.
There is no interest added later, only this fixed upfront fee.
My question:
Is this type of payment considered riba (interest) or is it permissible in Islam?
Jazakum Allahu khairan.
In the name of Allah, the Most Gracious, the Most Merciful
Answer:
Using the Zilch app to buy groceries would be prohibited.
The Zilch app allows users to pay for their purchases over time in equal monthly instalments.[1] A fixed fee, shown upfront, is added to these instalments.[1]
This would be considered as a kind of loan plus excess, which is riba (usury).[2] Riba is prohibited, and so using the Zilch app would be prohibited.[2]
Only Allah ﷻ knows best.
Written by Muftiyah Humairah Badshah
Checked and approved by Mufti Mohammed Tosir Miah
Darul Ifta Birmingham
References:
[1]
https://www.zilch.com/uk/
[2]
ذَكَرَ الرِّبَا، لِأَنَّ فِي كُلٍّ مِنْهُمَا زِيَادَةً إلَّا أَنَّ تِلْكَ الزِّيَادَةَ حَلَالٌ، وَهَذِهِ حَرَامٌ
…
تَعْرِيفُ رِبَا الْفَضْلِ، لِأَنَّهُ هُوَ الْمُتَبَادَرُ عِنْدَ الْإِطْلَاقِ، وَلِذَا قَالَ فِي الْبَحْرِ فَضْلُ أَحَدِ الْمُتَجَانِسَيْنِ. نَعَمْ هَذَا يُنَاسِبُ تَعْرِيفَ الْكَنْزِ بِقَوْلِهِ فَضْلُ مَالٍ بِلَا عِوَضٍ فِي مُعَاوَضَةِ مَالٍ بِمَالٍ
فَإِنَّ الْأَجَلَ فِي أَحَدِ الْعِوَضَيْنِ فَضْلٌ حُكْمِيٌّ بِلَا عِوَضٍ، وَلَمَّا كَانَ الْأَجَلُ يُقْصَدُ لَهُ زِيَادَةُ الْعِوَضِ كَمَا مَرَّ فِي الْمُرَابَحَةِ صَحَّ وَصْفُهُ بِكَوْنِهِ فَضْلَ مَالٍ حُكْمًا
Radd Al-Muhtaar (Halabi ed., Daar Al-Fikr, https://shamela.ws) v.5 p.168
كُلُّ قَرْضٍ جَرَّ نَفْعًا حَرَامٌ
Radd Al-Muhtaar (Halabi ed., Daar Al-Fikr, https://shamela.ws) v.5 p.166