Bahith Detailed explanation on purchase in cash or installments Q1. This is in reference to the Q&A “Purchase in cash or installments” for which Yahya Al-Baheth replied with reference to Sheikh Bin Baz. For understanding at my level, it would mean interest is permissible in Islam. Please explain how interest is halal when it is always haram? — Syed Irfan Ahmed A1. This is your understanding as you said, and no one said that interest is halal. The fact is that such transaction is far away from interest (Riba) if one adheres to the rules we mentioned. It will be interest if they add to the fixed price after the sale, but one has the right to set one price for his commodity for the one who will pay in cash and another price for the one who will pay in installment. I explained in my answer that both the buyer and the seller should mutually agree on the price before the purchase. This isn't only the saying of Sheikh Bin Baz (May Allah have mercy on him), it is the saying of the vast majority of Ulema'a of all Islamic Fiqh schools (Madhahib). The International Council of the OIC Fiqh Academy, in its sixth session held in Jeddah, Kingdom of Saudi Arabia, from 17 – 23 Shaban 1410, corresponding to 14 – 20 March 1990, having reviewed the research that were presented to the Council, concerning the topic of sale by installment, and having listened to the discussions about it, resolved the following: 1. In a sale on deferred payment, it is permissible for the selling price to be higher than the selling price in a cash sale. Similarly, it is permissible to mention the price of the article on cash payment and the price on deferred installment payments. However, the sale is not valid, except when the contracting parties are both certain of the form of the sale, i.e. whether cash sales or sales on deferred payment. The sales is not valid if there is uncertainty, as to whether the sales is in the form of cash or deferred payment, whereby there is no agreement on one of the two prices. 2. In deferred payment sales, it is not valid to mention any interest due on the installments, whereby the interest sum is separate from the price on cash payment, that is the interest is tied with the deferred period. This ruling is the same, not with standing whether the two contracting parties mutually agreed on a certain percentage or they connected it with the existing interest rate. 3. If the buyer delayed in paying the installments, i.e. beyond the specified time, it is not allowed to impose any addition on him, with or without prior preceding conditions. This is because doing that is tantamount to Riba which is haram. 4. It is haram for well-off debtors to postpone the installment payments. In spite of this, it is not permitted by the Shari'ah to impose a condition for compensation, in cases of delayed payments. 5. In a deferred payment sale, it is permissible for the vendor to impose a condition that the entire installment payments shall become due before their former date, if the buyer delayed in paying some of the installments, as long as the buyer consented to this condition at the time of contract agreement. 6. After the sale has been concluded, the seller has no right to maintain ownership of the item. However, it is permissible for the vendor to mortgage the sold item as security of his right to obtain the deferred installments. Innovation (Bida'a) in the religion and in the world Q2. What is the meaning of Bida'a? Is using modern technology in Dawah considered as Bida'a? A2. The linguistic meaning of Bida'a (innovation) is to produce new things that no one ever before came up with it. Allah said, “That he is (The Originator (Bade'o) of the heavens and the earth. When He decrees a matter, He only says to it : “Be!” — and it is.” (Qur'an, 2: 117) He founded them for the first time and without any previous existance. And, Bida'a in Islamic term is to innovate something in the religion of Allah that is to add something in the teachings of Islam without any proof from the Qur'an or the Sunnah. Prophet Muhammad (peace be upon him) said, “Whoever introduces into our matter (religion) that which is not a part of it, will have it (his innovation) rejected.” (Bukhari and Muslim) In another narration, the Messenger of Allah (peace be upon him) warned against any innovation in the religion, he said, “Every innovation is misguidance and going astray.” (Abu Dawood and Tirmidhi) The Prophet (peace be upon him) also said in another narration that every innovation is misguidance and all misguidance is in the Hellfire. (An-Nasa'i) Based on this definition of Bida'a, the rejected innovation is any thing that relates to the teachings of the religion, to come with some acts of worship or beliefs that has no bases in the teaching of the Qur'an or the Sunnah. Innovation and discoveries related to our daily life is encouraged in Islam, as long as it does not contradict Islamic teachings and principles. Using modern technology in Dawah is required as means to convoy the message of Islam. Early Muslim generations had a good understanding for this matter and never mixed it between Bida'a in the religion and innovation in another field. Therefore, they were able to build a great civilization and had many discoveries accredited to themselves in life. __
