R200 extra if item bought on credit

Question ID: 28295

As Salaamu ‘alaykum wa-Rahmatullahi Wabarakatuhu

Please can you tell me what the R200 is considered as ( if not interest)

I own an appliance store. I have an oven to sell, the price being R1000 if purchased for cash. However, if a customer takes it on credit i.e. monthly installments, he eventually ends up paying me R1200. Is this R200 considered as interest? QUESTION NO: 830 2007/12/22
DISPLAY ANSWER. No And Allah Knows Best Mufti Elias (May Allah Protect him)

Was Salamualaykum Warahmatullahi Wabarakatuhu.

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Asked on September 28, 2008 12:00 am
Private answer

One can have 2 prices cash or by installments. Cash naturally less than installments (See Qudoori)

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Answered on September 28, 2008 12:00 am