Price difference between cash sale and credit sale

Price Difference Between Cash Sale And Credit Sale

Darulifta Ahlesunnat

(Dawateislami)

Question

  What have respected Islamic scholars ruled on the following issue? We are based in the wholesale grain market of Basirpur, Okara. We deal in fertilizers, seeds, sprays, etc. We sell some items in cash and some on credit and this is decided in advance. The price of the item sold on credit is higher than that of the one sold in cash. The payment period is also decided in the beginning and no fine is received for any delay in the payment. The question is, according to Shari’ah, is it allowed or not to set a higher price for credit sale? Some people are of the opinion that setting a higher price for credit sale is interest. Please guide us about it from Shar’i point of view.

بِسْمِ اللہِ الرَّحْمٰنِ الرَّحِیْمِ

اَلْجَوَابُ بِعَوْنِ الْمَلِکِ الْوَھَّابِ اَللّٰھُمَّ ھِدَایَۃَ الْحَقِّ وَالصَّوَابِ

  While buying or selling anything in cash or on credit, some points must be kept in mind. First, whether it’s a cash deal or a credit one must be decided in the beginning. Second, in case of making the deal on credit, the payment time period must be decided and both sides must be aware of it. Third, there must not be any impermissible condition either. For example, there should not be the condition for financial penalty in the case of deferred payment. If made in conformity with these rules, sale and purchase will be permissible. Since the method in which you have made the deal is also in accordance with these rules, this is right. Those calling it an interest-based deal are mistaken; and repentance is compulsory for them for the reason that telling anyone a Shari ruling at a guess without verification is impermissible and a sin.

وَاللہُ اَعْلَمُ  عَزَّوَجَلَّ  وَرَسُوْلُہ اَعْلَم صَلَّی اللّٰہُ تَعَالٰی عَلَیْہِ وَاٰلِہٖ وَسَلَّم

Answered by:Mufti Fuzail Raza Attari