Recently i went through a correspondence course prospectus in which the fee structure was mentioned like Total course fee Rs. 1,200/- in 12 instalments of Rs. 100 per month. If we pay in lumpsum on joining the course fee is only Rs. 1,000. Could you plz tell me whether if i select to pay with the instalment scheme, is the excess Rs. 200 equal to interest according to Shariah.?
Answer
In the name of Allah, Most Gracious, Most Merciful
Assalaamu `alaykum waRahmatullahi Wabarakatuh
The free structure is according to Shariah.
In effect if one pays a lumpsom amount, he will get a discount of Rs.200. The Rs.200 in the monthly installments of Rs.200 will not be interest.
And Allah knows best
Wassalam
Mufti Ebrahim Desai
Darul Iftaa, Madrassah In’aamiyyah