Title: Installment Purchase Question: What is the status of purchase items like cars on installments as in the end one ends up paying far more than the actual price? Answer: There is nothing wrong in making payment for any purchase item in installments. However, when the seller demands a higher price for his item in return for allowing the buyer an extra time for making the payment, this additional charge shall come under the ambit of Riba . Thus, charging an additional amount in return for allowing the buyer any extra time to make the payment is prohibited in the Shari`ah . In other words, the Shari`ah has strictly prohibited the seller from charging this extra amount. As I have already clarified in one of my earlier responses, the prohibition of the Shari`ah pertains primarily to only taking or charging Riba . The Shari`ah does not directly prohibit giving Riba . On the other hand, in a few narratives the Prophet (pbuh) is ascribed to have condemned people who give Riba . In my opinion, there are two reasons for this condemnation. Firstly, as I have explained in one of my earlier responses, these narratives pertain to the times when the institution of charging Riba was completely abolished and no individual who charged Riba was allowed to operate in the society. It was at that time that the Prophet (pbuh) declared that (when the society is completely cleared from the evil, and taking Riba has been declared a punishable crime) even those who offer to pay Riba to secure loans for themselves or who silently accept paying Riba and do not bring it to the notice of the state authorities and those who are scribes of and witnesses to the documentation for Riba -based transactions without bringing such transactions to the notice of the state are accomplices to the crime and therefore deserve to be punished for their acts. Secondly, it is quite obvious that any action that directly or indirectly supports or helps another person in going against the directives of the Shari`ah should be avoided to the utmost. Thus, even though the direct prohibition of the Shari`ah relates primarily to taking or charging Riba only or in other words, in extending Riba -based loans, a Muslim should also not be careless in taking Riba -based loans, as this would mean that another person, with his cooperation, shall be disregarding the directives of the Shari`ah . This really implies that a person should try his utmost to stay away from all kinds of Riba -based transactions. On the other hand, the present day economies and societies are under the capitalistic influence to such an extent that it has become more or less impossible to secure Riba -free loans, even when a person is faced with difficult circumstances and pressing needs. In these conditions, it may be hoped that if a person does not have an option and is forced to cooperate or participate in a matter that results in disobeying God's directive, without the desire or liking of doing so, God will not hold him accountable for such an act. 15 th June 1999