Q: Is it permissible to charge one set price for goods bought in cash and a different price when they buy on credit or lay buy? Is this extra regarded as Riba (usury/interest)?
A: Yes it wil be permissible to have a different price for cash and a different price for credit provided that the price is fixed at the time of concluding the transaction, i.e. it must be agreed upon that I will pay you so much over a period of so much months. There should be no ambiguity with regards to the final price. Added to that, the seller will not be able to levy any additional charges if the purchaser for whatever reason is unable to pay within the agreed period as this would be prohibited interest (riba). The proof for the impermissibility of such transactions is that he would be charging extra for late payment which is haraam in Islam.
And Allah Knows Best
—
Aadiel Moosagie (Mufti)
Council of Ulama Eastern Cape
Tel/Whatsapp: +27 83 982 6968
[email protected]
www.councilofulama.co.za
@UlamaCouncilEC