A car costs $150 per week on 0% interest for 4 years. However, if the buyer falls back on paying within the 4 years, he will be charged interest. Can a Muslim sign a contract to buy the car? Or is it ribaa – as the contract will state that if he falls back on his payments and extends paying to more than 4 years, he will pay interest on the installments paid after the 4 years?
A car costs $150 per week on 0% interest for 4 years. However, if the buyer falls back on paying within the 4 years, he will be charged interest. Can a Muslim sign a contract to buy the car? Or is it ribaa – as the contract will state that if he falls back on his payments and extends paying to more than 4 years, he will pay interest on the installments paid after the 4 years?
12Jul
This is not permissible as the stipulation of RIBA is in the contract
and he is agreeing to it.
A car costs $150 per week on 0% interest for 4 years. However, if the buyer falls back on paying within the 4 years, he will be charged interest. Can a Muslim sign a contract to buy the car? Or is it ribaa – as the contract will state that if he falls back on his payments and extends paying to more than 4 years, he will pay interest on the installments paid after the 4 years?