Most-asked question

Is buying on instalments or lay-by permissible?

30 fatawa in the archive answer questions on this, from 5 South African Darul Iftas (AskImam, Mufti Online, Azaadville, Jamiat KZN, MUBZ). Below, each Darul Ifta’s answer is quoted word for word from the opening of one of its fatawa.

Based on the fatawa linked below. Please read the sources and double-check with a Darul Ifta for your situation.

Consult a mufti for your situation. Fatawa SA is a read-only archive and issues no rulings of its own.

What the Darul Iftas say

“In principle, it is permissible to have a discounted fee for advance payments and normal fee for monthly payments. If the instalment amount of £12 is specified for every month and it will not fluctuate, then it is permissible. This is not interest.”

AskImam — Paying fees on instalments · 22 Mar 2015

“If the instalments are fixed for a fixed period then this is not sood and interest.”

Mufti Online — Paying for an item in instalments · 4 May 2017

“In the enquired case, if the cancellation of the lay-by involved actual work/labour, such as transporting the item back to the warehouse etc., then actual costs incurred may be charged. If there are no costs incurred to the seller, it will not be permissible for him to charge a fee.”

Jamiat KZN — Can a fee be charged for the cancellation of a lay-by? · 23 Apr 2018

“In a lay-by transaction, the money paid as a deposit by the customer will be regarded as an amānat (trust) in the hands of the seller and will only be regarded as a payment for the purchased item when the last instalment is paid off.”

MUBZ — Lay-By · 16 Jun 2024

Quotes are the opening words of each answer as published; the full answer, its conditions and references are on the fatwa page. Answers depend on the exact details of each question.

Read the fatawa

  1. Lay-By MUBZ · 16 Jun 2024
  2. Charging an admin or handling fee when a customer cancels the lay-by Mufti Online · 11 Nov 2023
  3. Lay-By Azaadville · 9 May 2022
  4. Converting total bill of shopping into monthly instalments of credit card AskImam · 9 Jan 2019
  5. Can a fee be charged for the cancellation of a lay-by? Jamiat KZN · 23 Apr 2018
  6. Paying a penalty if one delays in paying an instalment and Takaful insurance when purchasing a car Mufti Online · 27 Jul 2021
  7. Instalment Sale Without Interest Azaadville · 19 Nov 2021
  8. EMI (Equated Monthly Instalments) AskImam · 21 Aug 2018
  9. Procedure of a Lay-by sale Mufti Online · 15 Oct 2016
  10. Paying fees on instalments AskImam · 22 Mar 2015
  11. Paying for an item in instalments Mufti Online · 4 May 2017
  12. Fulfiling Kaffarah in instalments. AskImam · 28 Feb 2015
  13. Paying a higher amount of school fees when paying in instalments Mufti Online · 30 Jan 2017
  14. Buying products on instalment AskImam · 19 Nov 2014
  15. Discharging zakaat in instalments Mufti Online · 3 Jun 2015

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