I was bit confused over these two fatwas. I am not able to distinguish between them because both of them have different answers.
In fatwa 31134 you said its ok to buy the thing on installment provided the final price is agreed upon and no late fee applies.
However in fatwa 22738 you said it as riba . If a friend of mine buy an ipad for me for $500 and he sold me that ipad for $600 on six monthly installments. Will that $100 will be considered as riba. In question the friend charge extra 17.5% for toal value paid by monthly installments.
Can you please remove my confusion in this regard.
In the Name of Allah, the Most Gracious, the Most Merciful.
As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuhu.
Your question refers.
Your understanding of Fatwa 31134 is correct.
Fatwa 22738 refers to an instalment purchase of an item without a fixed upfront price. Moreover the purchaser’s capacity has not been defined as a creditor or seller.
The correct procedure to execute the instalment sale you refer to is for the person to sell the item to you with a fixed price and tenure upfront.
And Allah Ta’āla Knows Best
Mufti Ismail Desai,
Checked and Approved,
Mufti Ebrahim Desai