• Transactions & Dealings >> Interest & Insurance

    Question ID: 183161Country: Bangladesh

    Title: Credit Card Issue

    Question: If you buy something by Credit Card in 12-36 months installments you have to pay 12% or 15% more than the purchase price, is it permissible to buy in this way?

    Answer ID: 183161

    Bismillah hir-Rahman nir-Rahim !

    (Fatwa: 333/231/L=3/1443)

     

    It is permissible to buy and sell by credit card on the condition that in case of purchase the amount is paid within the fixed period so that interest is not charged. In case of purchasing through credit card if you have to pay interest due to exceeding the fixed time, then this deal will become interest based and unlawful. So, if you buy something with a credit card for 12 or 36 months installments in which you have to pay 12 or 15 percent interest, then this deal will involve interest and become unlawful. You should never do this.

    Allah (Subhana Wa Ta'ala) knows Best

    Darul Ifta,

    Darul Uloom Deoband, India