Wednesday, December 14, 2011
If u had to sell your medication (10 bottles) to loan me $100, would it be fair to repay $100 in 1 year time?
Salam. Yes there is no time value in islamic syaria law. Money is not a commodity. Money is just only as the exchange tool but its inventory can be treated as et.based on the fair value.In your case the valid transaction should be murabahah where you sell medication without loan but by adding it with fair profit if the buyer will repay it in one year time.The profit margin is hala but interest is haram because riba is not allowed The trader should have one price for buy and sell with its installments.He/she could not have the price for cash transaction.
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