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 Role of Muslim Women in Reforming Society

Discover how Muslim women’s faith and obedience can transform society. Learn key Islamic teachings from the Quran and Hadith Read More

4 days ago

Unveiling the Truth: Hind bint Utbah and Hamza’s Martyrdom

Explore the authentic Sahih al-Bukhari narration refuting claims that Hind bint Utbah ordered Hamza's death Read More

4 days ago

Fajr Prayer: Key to Success in This Life and Hereafter

Explore the profound significance of Fajr prayer in Islam, its immense rewards, and why it's a crucial test of faith Read More

4 days ago

The Forgotten Third: Companions Who Abstained from Fitnah

Explore the often-overlooked third group of Companions who chose to abstain from internal fighting during a tumultuous period in Islamic… Read More

4 days ago

Ibn Hajar on Love and Hatred in Islam

Learn about love, hatred, and hypocrisy in Islam through hadiths and Ibn Hajar's insights Read More

4 days ago

Ruling on Calling a Wife ‘Sister’ in Islam

A husband called his wife 'sister.' Does this break the marriage? This article explains the Islamic concept of Zihar, its… Read More

2 weeks ago