FatwaSarawakTransactions & Finance
Hukum bayaran ansuran
Is an installment price higher than the cash price for electrical goods considered riba?
Short answer
Buying on installment is permitted, and the difference between the cash price and the installment price is not riba.
A reference, not a fatwa. First sentence of the summary below — read the original fatwa and consult your state authority before acting.
- Authority
- Sarawak State Mufti Department
- Date
- Status
- Opinion (irsyad)
- Series
- Irsyad (Koleksi Kemusykilan Agama)
- Topic
- Transactions & Finance
No evidence of gazettement in the source — this is not a gazetted fatwa.
Summary
Buying on installment is permitted, and the difference between the cash price and the installment price is not riba. The condition is that the contract follows the proper sale formula, meaning two different prices are not stated at the same time in the contract, and both parties agree on the price and payment method before the contract. The extra amount relates to the goods being handed over before the full price is paid. Cash purchase still has advantages in terms of financial management.
Written in our own words from the original fatwa — check the source before acting on it.
Islam tidak melarang jual beli secara ansuran dengan syarat ia mematuhi sighah akad jual beli yang telah ditetapkan iaitu tidak disebutkan dua harga yang berlainan dalam satu masa.
Read the full fatwa on the Sarawak website (new tab)
How to cite
Cite the original fatwa and its authority. Rujuk Fatwa is only where you found it.
Sarawak State Mufti Department. “Hukum bayaran ansuran”, 28 December 2022. https://muftinegeri.sarawak.gov.my/web/subpage/irsyad_list/#2022-12-28-hukum-bayaran-ansuran. Found via Rujuk Fatwa: https://rujukfatwa.com/en/fatwa/is-installment-price-higher-than-cash-riba/