Charging a fee with instalments

Q: I'd like to know if a bank provides a service to purchase things on instalments of 6 months for example at a 0% mark up but charges a small fee for it, would that be considered as interest? Is it halal to avail this offer? Here's what they say:

Instalment Plan

Shariah Compliant

No processing fee

Payback in easy instalments

No extra charges

How it works? Select the product, choose the plan of your choice - 3, 6, 9 and 12 monthly instalment plans available. Apply online.

A: This is not right.

And Allah Ta'ala (الله تعالى) knows best.

 

Answered by:

Mufti Ebrahim Salejee (Isipingo Beach)