Seller an item on credit for a higher price

Q: Nowadays if we buy a phone which is 1000 dollars and if I buy with monthly EMI of 110 dollars for one year. This additional charge of 100 dollars is permissible in Islam? Is the 100 dollar considered haraam?

A: Generally the credit price is more than the cash price. Hence, if they are selling the phone on credit for a higher price and the credit period is fixed, then it is permissible and this is not regarded as riba (interest).

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

Answered by:

Mufti Zakaria Makada

Checked & Approved:

Mufti Ebrahim Salejee (Isipingo Beach)