We have certain stores that allow to convert our credit card based purchases into monthly installments without interest. However, in order to convert, a one-time fee applies. Is this fee permissible? I hear from people that this is interest in disguise so I want your clarification on this.
We have certain stores that allow to convert our credit card based purchases into monthly installments without interest. However, in order to convert, a one-time fee applies. Is this fee permissible? I hear from people that this is interest in disguise so I want your clarification on this.
21Jul
ANSWER:
This is riba as it is an interest occurring over a loan.
We have certain stores that allow to convert our credit card based purchases into monthly installments without interest. However, in order to convert, a one-time fee applies. Is this fee permissible? I hear from people that this is interest in disguise so I want your clarification on this.