Islamic Banks

Q 7: Is it permissible for Muslims to buy a car or house furniture by monthly installments, bearing in mind that default on payment of installments at the end of payment period causes an increase in the value of the bought object? In fact, I heard many Muslims object to it.The Fiqh Council in the Kingdom of Saudi Arabia permitted buying a car or house furniture by installments. Is it sound? Inform us, may Allah reward you good!

A: It is permissible to buy cars, furniture or any other commodity on credit for a price higher than that paid in cash, provided that it is paid by defined installments at defined times. Allah (Exalted be He) said, O you who believe! When you contract a debt for a fixed period, write it down. Allah (Exalted be He) also said, ...whereas Allâh has permitted trading which includes both in cash and on credit sale, were it by installments or otherwise. May Allah grant us success. May peace and blessings be upon our Prophet Muhammad, his family, and Companions.