Buying an item in instalments

Question

Question: There is a motorcycle which, if bought for cash, sells for five thousand rupees, and if bought in instalments, sells for five thousand five hundred rupees. Is it permissible to take it in instalments?

Answer

A difference between the cash price and the credit price is not prohibited, provided that the instalments are fixed, and it is not then the case that, if some instalment is not received at its fixed time, the price is increased further, the sums already received are confiscated, and the motorcycle too is lost.

Source: Fatawa Mahmudiyya

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