Salaam,
Thank you for the opportunity to post on this forum. My question is if an additional amount is charged for the deferred payment in installments in Bay’ al-Muajjil, is that considered Riba? Both the spot price and increased deferred installments price are decided at the time of the sale. I have read both opinions and was hence looking for the opinions of the scholars/experts on this forum.
The specific situation is the tuition fees for a given year. If the full amount is paid upfront, the university is charging a certain amount. If the student is given the option to pay in installments, they are adding on a “1.1% interest charge”.
My question is: Is this really interest?
Jazak Allah khayr.
Wa alaykum salaam,
No, an increased price in a deferred sale is not Riba.
Allah knows best
Thank you very much for your kind response.