Credit price higher than cash price

Answered according to Hanafi Fiqh by

Q: Wholesalers often sell to retailers large stocks on a credit period and for this credit period they often charge a little higher price for the stock then those making cash sales. It is clear that retailers purchase big stocks and cannot pay for that upfront and often prefer to purchase on credit. Does that little higher price charged for the credit period amount to interest? A house hold appliances wholesale business is in question.


A: As long as the price is fixed from the inception and no additional amount will have to be paid in the case of late payment, it is permissible.

And Allah Ta’ala (الله تعالى) knows best.


Answered by:

Mufti Zakaria Makada

Checked & Approved:

Mufti Ebrahim Salejee (Isipingo Beach)

This answer was collected from, where the questions have been answered by Mufti Zakaria Makada (Hafizahullah), who is currently a senior lecturer in the science of Hadith and Fiqh at Madrasah Ta’leemuddeen, Isipingo Beach, South Africa.

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