Wednesday, November 21, 2018 - 13 Rabi' al-Awwal 1440

Subscribe to our mail list

Home » Fatwas » Financial Transactions » Selling

The rate of permissible profit in cash and installment sales

What is the permissible rate of profit in cash and installment sales?


Allah the Most High says:

But God has allowed trade and forbidden usury. [Qur`an 2:275]

Islamic law does not specify a maximum or minimum rate of profit in cash and installment sales. However, we advise the inquirer to be merciful with those he deals with and not to overcharge others. The Prophet [pbuh] said, "May Allah have mercy on the man who is generous when he buys, sells, and demands (his due)" [Bukhari].

The above answers the question and Allah Almighty knows best.

Related links
» What is the ruling for selling gold in installments?
» Using power of attorney after the death of the grantor
» Selling what one does not own
» Selling unripe produce
» Selling TV sets