Tag Archives: Credit

Ruling of Selling by Credit without Setting The Price

Housing Credit

Ruling of Selling by Credit without Setting The Price

Assalamu’alaikum. Ustadz, in my village, there’s a practice of rice trading in which the farmer sells his rice with due time system, that is, the buyer/collector will pay its price after a year, with the highest price of rice at that time. Thus for example, the crop in January 2014 was immediately sold, but the payment will be received on December 2014 with the price that is determined by the seller, according to the highest price of rice in 2014. The farmers are delighted with this practice since they are not having trouble to stock their rice anymore. And the buyers are happy because they get additional capital to turnover for a year.

What is the ruling of this system, is it allowed or not?

May Allah reward you greatly, wassalam.

From: Abu Hamza

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Ruling for Long-distance Credit

Rulings for Three sided Credit

Ruling for Long-distance Credit

In the name of Allah.

Is it allowed to sell goods through this way:

The goods that we’d like to sell was not located in our town (A) but in town B where our prospective buyer lives. The buyer just have to describe the attributes of the goods that he wanted and told us that in his town there was a person who sell the goods, then the buyer connected me to the goods owner. After that, I would negotiate with the goods owner and if we reached a deal, I would transfer some money to buy the goods, and after that the buyer could come to take the goods from its previous owner. Is it allowed to do such credit system?

May Allah reward you with goodness for your kind answer.

From: St Marwah


Allah knows best, as far as I know, there are several forbidden matters occur in that system:

  1. You sell something that you don’t own
  2. Such transaction is just a trick to accommodate usury. The core of the transaction is that you lend some money to other people then he return it to you more than the actual sum. As for the goods, it is just served as a trick.

And Allah is the guider.

Answered by  Said Yai Ardiansyah, Lc., M.A (summarized from a discussion in the mailing list of PM-fatwa)

Article of www.syaria.com


Credits and Loan: Problems and Solution


Credit, as one can easily see today, has became one of the most popular method of trading and payment among worldwide society. Since it gives convenience and ease for most people rather than direct payment, no wonder that it keeps gaining favors day by day, from all levels of society, including muslim.

It is known that the credit system has long been a part of human economical life, even in the era of Allah’s apostle, Muhammad Shallallaahu ‘alayhi wa Sallam. Back then, it’s system was much more simple, as people’s social and economic system itself. But today, it has developed lots of forms, which are probably similar in names and mentioning, but differ in essence and way of conduct.

credit and loan problems and solution

Thus, it is very important for one to understand the details of every forms of credits, in order to compare it’s equalities with practices done in our Prophet Shallallaahu ‘alayhi wa Sallam’s time, and determine it’s verdict eventually.

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