Salam sale

Question

Question: The respected Ahmad trades in grain and also carries on other trade. In the rainy season we need money, so we fix the rate in advance and take the money for the goods, and at harvest we give the grain at that same rate, whether the rate is lower or higher. Is this permissible or not? Is this not interest? Kindly write the gist of it clearly.

Answer

If the rupees were given as a loan, then returning the rupees is obligatory, and stipulating an increase in it is interest. However, if at the time of repayment no rupees are available and grain or the like is to be given in place of the rupees, then whatever transaction is agreed at the time of giving is valid.

Source: Fatawa Mahmudiyya

Preview. The full text opens with JavaScript enabled.