Question details | Purchasing for a Higher Price on Installments | Ask Hidayah | Hidayah Academy | Purchasing for a Higher Price on Installments

Transactions Interest

Purchasing for a Higher Price on Installments

Question:- I have to ask a question about zero markup with increased price. A commodity is worth 180 for cash at the market and I know that for a fact. A shopkeeper may even charge 178 on cash by reducing his expenses. But if a company, or a bank, raises its price to 195 and sells it to me on installments over the period of a year with zero markup, is this permissible?

Answer:- It is not permissible for a company or a bank to sell a commodity at a price higher than the market rate if it was explicitly mentioned that there will be zero markup.