Buying and Selling: Ruling on Credit Sales with Price Difference and Buyer’s Intention of Ribā

Practical Laws of Islam as per the teachings of Imam Khamenei

Buying and Selling: Ruling on Credit Sales with Price Difference and Buyer’s Intention of Ribā

English:

Question #1580:

The owner of a car offered it for sale at a particular price in cash and a higher one on a ten-month credit. To his mind, the buyer concluded that the difference in price is a surcharge over and above the cash price. Taking into consideration the conclusion of the buyer that he was going to enter into a ribā-bearing deal, is such a transaction considered as a ribā-based one and, therefore, invalid?

Answer #1580:

There is no harm in that if the transaction was based on buying on credit, i.e. paying for the goods by instalments. Such a transaction is not considered as a ribā-based one.

-Imam Khamenei, Practical Laws of Islam, Importance and Conditions of Buying and Selling