Riba and installment sale : [1]

Fatawa Question

Assalamu Alaikum, Dear Sir, I’m Hijaz, undergraduate, B.Sc. Accountancy, from Sri Lanka. One of my friend bought a mobile phone in installment system. Cash price of mobile Rs 19575 Monthly installment Rs 1875 (1875 * 12 = 22500) Additional charge Rs 2925 (22500-19575) Period 12 months % Applicable 30 % per annum (2.221 % per month cumulative) (calculated by me) Where Sri Lankan inflation stands This is sold to credit card holders, monthly installment charged to the card and it is said 0 % interest scheme. I strongly believe that installment system is based on interest and it’s not allowed in Islamic Shari’ah law, but now a days I’m having conflict with my friends that they say this is acceptable and the justify it based on time value of money concept. So please suggest me a fatwa on this issue with Quran and Hadith supporting. Thank You, Allah may bless you.

Fatwa

Click hereto view more

Publication Date

2008-03-23

Main Subjects

Financial and Accounting Sciences
Religion
Islamic Studies

Topics

• Islamic jurisprudence
• Prices
• Money
• Usury
• Credit cards
• Installment sales

No. of Pages

2

Data Type

Fatawa

Language

English

Record ID

BIM-730461

• APA
• MLA
• AMA