Is it permissible to sell goods to customers via consumer credit? Kindlyreply in detail.

Assalaamu Álaykum Wa Rahmatullaahi Wa Barakaatuhu

Hereunder is the reply to your query.

The Sharée relationship between CCC, the consumer and the merchant must be examined before determining the validity of the transaction. The relationship between CCC and the consumer is of a lender and borrower. This is apparent from the first paragraph of the document where the CCC undertakes to provide finance to the merchant's customers and settle the merchant's invoice. It is obvious and known that the consumer will pay the CCC a bigger amount over an extended period of time. Therefore, this will be interest being paid on a loan. Hence this is not permissible.

The relationship between the consumer and the merchant is that of buying and selling. However, since it is established that the relationship between the CCC and the consumer involves transacting in interest, it is not correct for the seller (merchant) to accept payment of the CCC. This will be aiding in sin and not permissible. In fact, it will not be permissible to even enter into a deal of buying and selling due to the condition of arranging finance with the CCC who will charge the consumer interest. The Fuqahaa have stated that any condition contrary to the Shariáh made in the actual deal nullifies the transaction.

As an alternative, if the CCC transforms its principles and conforms with the principles of Muraabaha, wherein the CCC purchases the item from the merchant and sells it to the consumer on a higher fixed price, this would be permissible.

And Allah Taãla Knows Best.

Was salaam

Mufti Ebrahim Desai