Short answer
Paying in instalments is permitted when it is an instalment sale: a single price, fixed at the time of purchase, possibly slightly higher than the cash price (International Islamic Fiqh Academy, resolution 51). It becomes forbidden if there is separate interest, or late-payment fees added to the debt for the lender’s benefit.
What the institutions say
Official positions, with their reference. The badge sums up the institution’s position, not an opinion of Assabile.
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International Islamic Fiqh Academy Organisation of Islamic Cooperation, JeddahUnder conditions
Selling in instalments for more than the cash price is permitted if a single price is fixed in the contract; providing for separate interest or a surcharge for late payment is prohibited. A discount in return for early payment is permitted if it was not agreed in advance.
Resolutions 51 (2/6), 1990, and 64 (2/7), 1992
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Diyanet Presidency of Religious Affairs, Türkiye (High Council of Religious Affairs)Under conditions
Paying in instalments, even at a slightly higher price, is permitted if the price is fixed at the time of sale; spreading a debt later granted by a bank in return for an extra charge is interest.
Fatwas of 2017 and of 15/09/2020 (vade farkı, taksit)
Positions are reported as they stand; other scholars may hold other views. Method and disclaimers
Depending on your country
- France
- Merchants’ “3 ou 4 fois sans frais” (3 or 4 instalments with no fees) is often provided by a payment institution; check the late-payment fees set out in the terms and conditions.
- Gulf states
- Tabby and Tamara offer interest-free instalment payments; some of their offers claim Shariah certification: read the late-payment conditions.
- Türkiye
- Taksit at the merchant’s price is accepted; restructuring of the debt by the bank is not.
- United Kingdom
- Klarna, Clearpay and PayPal offer interest-free pay in 3; some longer plans charge interest.
When it is permitted
- The total price is fixed at the time of purchase (no choice left open between several prices depending on the term: al-Tirmidhi 1231).
- There is no separate interest calculated according to the term.
- Late payment does not increase the debt (resolution 51 (2/6)).
The price may be slightly higher than the cash price: this is a deferred sale, which is permitted (resolutions 51 and 64). The Qur’an asks for debts with a term to be written down (al-Baqarah 2:282).
The problem of late-payment fees
Most split-payment services advertise themselves as “interest-free”, but provide for fees in the event of late payment. A penalty added to the debt for the creditor’s benefit is riba according to the Academy (resolutions 51 and 109). Some scholars accept flat collection fees corresponding to the actual cost, or an undertaking to donate to a charity; others advise avoiding any contract that provides for a penalty. If you use one, always pay on time and read the terms.
When it becomes credit
- A longer plan with a stated rate (APR) is interest-bearing credit.
- Spreading payments offered by the bank after a purchase that has already been paid for is credit (Diyanet).
- Buying gold or currencies in instalments is forbidden, even without fees, because they must be exchanged hand to hand (Diyanet; see gold).
The verses
يَٰٓأَيُّهَا ٱلَّذِينَ ءَامَنُوٓا۟ إِذَا تَدَايَنتُم بِدَيْنٍ إِلَىٰٓ أَجَلٍ مُّسَمًّى فَٱكْتُبُوهُ وَلْيَكْتُب بَّيْنَكُمْ كَاتِبٌۢ بِٱلْعَدْلِ وَلَا يَأْبَ كَاتِبٌ أَن يَكْتُبَ كَمَا عَلَّمَهُ ٱللَّهُ فَلْيَكْتُبْ وَلْيُمْلِلِ ٱلَّذِى عَلَيْهِ ٱلْحَقُّ وَلْيَتَّقِ ٱللَّهَ رَبَّهُۥ وَلَا يَبْخَسْ مِنْهُ شَيْـًٔا فَإِن كَانَ ٱلَّذِى عَلَيْهِ ٱلْحَقُّ سَفِيهًا أَوْ ضَعِيفًا أَوْ لَا يَسْتَطِيعُ أَن يُمِلَّ هُوَ فَلْيُمْلِلْ وَلِيُّهُۥ بِٱلْعَدْلِ وَٱسْتَشْهِدُوا۟ شَهِيدَيْنِ مِن رِّجَالِكُمْ فَإِن لَّمْ يَكُونَا رَجُلَيْنِ فَرَجُلٌ وَٱمْرَأَتَانِ مِمَّن تَرْضَوْنَ مِنَ ٱلشُّهَدَآءِ أَن تَضِلَّ إِحْدَىٰهُمَا فَتُذَكِّرَ إِحْدَىٰهُمَا ٱلْأُخْرَىٰ وَلَا يَأْبَ ٱلشُّهَدَآءُ إِذَا مَا دُعُوا۟ وَلَا تَسْـَٔمُوٓا۟ أَن تَكْتُبُوهُ صَغِيرًا أَوْ كَبِيرًا إِلَىٰٓ أَجَلِهِۦ ذَٰلِكُمْ أَقْسَطُ عِندَ ٱللَّهِ وَأَقْوَمُ لِلشَّهَٰدَةِ وَأَدْنَىٰٓ أَلَّا تَرْتَابُوٓا۟ إِلَّآ أَن تَكُونَ تِجَٰرَةً حَاضِرَةً تُدِيرُونَهَا بَيْنَكُمْ فَلَيْسَ عَلَيْكُمْ جُنَاحٌ أَلَّا تَكْتُبُوهَا وَأَشْهِدُوٓا۟ إِذَا تَبَايَعْتُمْ وَلَا يُضَآرَّ كَاتِبٌ وَلَا شَهِيدٌ وَإِن تَفْعَلُوا۟ فَإِنَّهُۥ فُسُوقٌۢ بِكُمْ وَٱتَّقُوا۟ ٱللَّهَ وَيُعَلِّمُكُمُ ٱللَّهُ وَٱللَّهُ بِكُلِّ شَىْءٍ عَلِيمٌ ٢٨٢
O you who have believed, when you contract a debt for a specified term, write it down. And let a scribe write [it] between you in justice. Let no scribe refuse to write as Allāh has taught him. So let him write and let the one who has the obligation [i.e., the debtor] dictate. And let him fear Allāh, his Lord, and not leave anything out of it. But if the one who has the obligation is of limited understanding or weak or unable to dictate himself, then let his guardian dictate in justice. And bring to witness two witnesses from among your men. And if there are not two men [available], then a man and two women from those whom you accept as witnesses - so that if one of them [i.e., the women] errs, then the other can remind her. And let not the witnesses refuse when they are called upon. And do not be [too] weary to write it, whether it is small or large, for its [specified] term. That is more just in the sight of Allāh and stronger as evidence and more likely to prevent doubt between you, except when it is an immediate transaction which you conduct among yourselves. For [then] there is no blame upon you if you do not write it. And take witnesses when you conclude a contract. Let no scribe be harmed or any witness. For if you do so, indeed, it is [grave] disobedience in you. And fear Allāh. And Allāh teaches you. And Allāh is Knowing of all things.
The hadiths
"The Messenger of Allah (ﷺ) prohibited two sales in one." There are narrations on this topic from 'Abdullah bin 'Amr, Ibn 'Umar, and Ibn Mas'ud. [Abu Eisa said:] The Hadith of Abu Hurairah is a Hasan Sahih Hadith. This is acted upon according to the people of knowledge. Some of the people of…
بَيْعَتَيْنِ فِي بَيْعَةٍ
Frequently asked questions
Is Klarna halal?
Interest-free payment in 3 instalments resembles an instalment sale and may be accepted; plans with a rate and late-payment fees are problematic. Check the plan you choose and always pay on time.
Can I buy gold with Tabby or Tamara?
No: gold is exchanged for money hand to hand; buying it in instalments is forbidden, even without fees.