Repaying more than the principal of a loan is prohibited (2/2)
Question
Q. I have a store where I sell goods for cash and on credit. The goods that I sell on credit are sold at a 10% markup due to the differed payment. Is this permissible?
Answer
It is permissible to sell items at a higher price if sold on credit. This will be on condition that the price is fixed at the time of the transaction; for example, the cash price of an item is R500 but on credit, it is for R600 payable over six months at R100 per month. (al-Hidaya, Fatawa Mahmudiyyah, Vol: 24, Pg: 195)
And Allah Knows Best
- Answered by
- Mufti Suhail Tarmahomed
Fatawa SA is an independent, read-only index of fatawa already published by Jamiatul Ulama KZN. It is not a fatwa service. For your own situation, ask the issuing Darul Ifta directly.