Topics: Islamic Finance

Is Deferred Payment Permissible in Islam? A Guide to Usury-Free Transactions

Understanding Deferred Payment in Islamic Trade: Conditions and Clarifications

Question: If a person sells something and says that they will take the payment after a certain period, such as selling wheat, rice, or a buffalo and deciding to take the payment after six months or a year, is this permissible or is it considered a usurious transaction?

Answer: If a person sells something now, finalizes the deal, and delivers the goods, but the buyer pays the price later, for example, after six months, there is no harm in this. This trade is permissible. However, a few clarifications regarding this trade are necessary:

1. The price of the items should be fixed at the time of sale, and the price should not include any additional amount for the six-month period, as is common in installment businesses where the cash price is different from the credit price. The price should be determined based on the current time because charging extra for the delay is considered usury.

2. The price should not be changed later.

3. The most important condition is that no financial penalty should be imposed if the payment is not made at the agreed time.

 Sheikh Maqbool Ahmed Salafi (May Allah protect him)

❪Jeddah Dawah Center, Hayy Al-Salamah – Saudi Arabia❫

Author: IslamicHelper

IslamicHelper

Recent Articles

The Crisis of Delayed Marriage in Society

In an era of profound social change, the age of marriage is steadily rising, creating silent fractures in our communities.… Read More

2 days ago

Buffalo Sacrifice: Salaf View vs. Ijma Claims

Explore the early Islamic view (Salaf) on buffalo sacrifice. This analysis refutes claims of scholarly consensus (Ijma'), showing how Zakat… Read More

2 days ago

Intimacy in Islam: Guide for Couples in Their 30s

Explore how Islamic teachings can deepen intimacy in your marriage as you enter your thirties. Discover practical tips, Sunnah practices,… Read More

4 days ago

Free Sahih Bukhari PDF Download: English, Urdu & More

Access the authentic teachings of Prophet Muhammad (PBUH) with our free Sahih Bukhari PDF downloads. Available in English, Urdu, French,… Read More

2 weeks ago

Hajj in Quran and Sunnah: A Comprehensive Guide with Key References

Discover the profound significance of Hajj, a pillar of Islam, through a comprehensive analysis of its primary references in the… Read More

4 weeks ago

Beware: Shaytan’s Seven Traps to Misguide You

Discover the seven cunning traps Shaytan uses to lead believers astray, as explained by Imam Ibn al-Qayyim. Learn how to… Read More

1 month ago