Selling goods on credit has become a common practice in today's business world. Many companies and sellers offer their customers the option to purchase products on credit. However, a question often arises: If the price of a product is higher when sold on credit compared to the cash price, does this amount to interest (Riba)? What does Islamic Shariah say about this?
According to Islamic Shariah, selling goods on credit is completely permissible. Charging a higher price for credit sales is also allowed, but certain conditions must be met. Firstly, the total price and the payment period must be clearly agreed upon at the time of the sale. For example, if the buyer chooses to pay in installments, the number of months and the total amount to be paid must be fixed during the contract.
A crucial point to note is that once the contract is finalized, neither the price nor the payment period can be altered. If the buyer fails to pay within the agreed timeframe, the seller cannot increase the price. The originally agreed price must remain unchanged. If a condition for price increase is included, it would fall under the category of interest-based transactions, which is prohibited (Haram) in Islam.
Sometimes, sellers may unknowingly or mistakenly include such terms that are not acceptable under Shariah. If a seller has collected extra money in this manner, they are obligated to return the excess amount to the buyer. If returning the money is not possible, the seller should donate it to the poor and needy as charity (Sadaqah) and seek forgiveness from Allah through sincere repentance (Tawbah and Istighfar).
In conclusion, selling goods on credit is permissible as long as it adheres to the boundaries set by Shariah. The price and payment terms must be fixed at the time of the contract and cannot be changed later. By conducting business in this manner, it remains halal and aligns with Islamic principles.
⦿ There is a Bengali version of this post on the Technology World Blog.
According to Islamic Shariah, selling goods on credit is completely permissible. Charging a higher price for credit sales is also allowed, but certain conditions must be met. Firstly, the total price and the payment period must be clearly agreed upon at the time of the sale. For example, if the buyer chooses to pay in installments, the number of months and the total amount to be paid must be fixed during the contract.
A crucial point to note is that once the contract is finalized, neither the price nor the payment period can be altered. If the buyer fails to pay within the agreed timeframe, the seller cannot increase the price. The originally agreed price must remain unchanged. If a condition for price increase is included, it would fall under the category of interest-based transactions, which is prohibited (Haram) in Islam.
Sometimes, sellers may unknowingly or mistakenly include such terms that are not acceptable under Shariah. If a seller has collected extra money in this manner, they are obligated to return the excess amount to the buyer. If returning the money is not possible, the seller should donate it to the poor and needy as charity (Sadaqah) and seek forgiveness from Allah through sincere repentance (Tawbah and Istighfar).
In conclusion, selling goods on credit is permissible as long as it adheres to the boundaries set by Shariah. The price and payment terms must be fixed at the time of the contract and cannot be changed later. By conducting business in this manner, it remains halal and aligns with Islamic principles.
⦿ There is a Bengali version of this post on the Technology World Blog.
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