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ArticlesQuestion:
I am working as Sr. Area Manager, in Singer Pakistan Limited, Rawalpindi, Pakistan. My company Manufacture and imports domestic products and sell it on installment higher than the cash price on 6, 9, 15, 18, and 24 months installment for each period markup is different in percentage. There is also an option that if a customer pays with in three months time no markup will be charge but only Rs.500/- (Pak Rupees) will be charged. My company makes an agreement with the customer on rent which means that the customer will pay rent to company till the last installment is paid than the ownership is transferred to the customer. Before that if customer defaults the company has the right to take its product back and has the right not pay back the money customer has given till that time. In case of any damage to product the responsibility will be on customer. Kindly let me know that this business is Halaal or Haraam and on behalf of this is my job Halaal or Haraam?
Fatwa:
All perfect praise be to Allah, The Lord of the Worlds. I testify that there is none worthy of worship except Allah, and that Muhammad 
is His Slave and Messenger.
is His Slave and Messenger.Your question included many issues:
Fist Issue: selling by instalments: we have already clarified that there is no harm in selling by instalments on the condition that the goods are sold with a definite price known to both parties and that this price should be fix and does not change even if there is a delay in the payments. With this fulfilled, there is no harm if the price of the goods sold by instalments is more than its cash price or that its price at a long term is more than its price at a short term.
The Second Issue: if the customer rushes in paying the instalments during three months then the additional amount on cash payment for the goods will be dropped by 500 Rupees. This issue is known by the jurists by 'dropping an amount from the total price because of hasting in paying some of it cash'; it means conditioning dropping a portion of the debt in return for paying some of it cash. The majority of the jurists, may Allah have mercy on them, are of the view that it is forbidden as it involves Ribaa (usury and interest). Ibn Rushd, may Allah have mercy on him, said: 'The grounds of those who did not permit 'dropping an amount from the total price because of hasting in paying some of it cash' is due to its resemblance to interest [additional profit] if payment is delayed, and there is a consensus that this is forbidden; the resemblance is that there is a part of the price put in return for the time in both cases.'
The Third Issue: The company agreed with the customer on the rent according to the method mentioned in the question. This method is known by the jurists, may Allah have mercy on them, as rent that ends with ownership of the property. This method has many procedures, some of them are permissible and some of them are not permissible. The method mentioned in the question is among the types that are forbidden.
Therefore, if you are able to involve yourself in what is permissible without engaging in what is forbidden or help others in such forbidden matters, then there is no harm for you in working in this company. However, if you are unable to limit yourself to what is permissible, then you are obliged to leave this work, and whoever leaves something for Allah's Sake, Allah will compensate him with something better.
Allah Knows best.
Fatwa answered by: The Fatwa Center at Islamweb
