Is Buying Jewelry on Installment Permissible in Islam?

The Islamic Ruling on Buying Jewelry with Monthly Installments

Question: In jewelry shops, people invest a specific amount for a fixed period each month. At the end of this period, they receive a reward, and no additional charges are added to the jewelry. Is it permissible to buy jewelry this way?

Answer: If someone adopts the method of paying small amounts monthly to a jeweler until the total amount is collected, and then buys jewelry like gold or silver from the jeweler, along with receiving a reward, this method is not permissible. For buying gold and silver, it is essential that the transaction is completed in one sitting, meaning the money is handed over, and the jewelry is received in the same instance. This is the only permissible method for buying gold and silver, which should be done on a cash basis, not on credit. Collecting small amounts and then purchasing jewelry is a form of credit transaction, which is not allowed.

For such people, my advice is to save the money you are giving to the jeweler with yourself, and when the amount is sufficient to buy the jewelry, purchase it in one go with cash. This is a permissible transaction. 

Respondent: Sheikh Maqbool Ahmed Salafi Hafizahullah 

Jeddah Dawah Center, Saudi Arabia  

Interpreter: Hasan Fuzail