I have read the following: "The seller gets compensated for the time that passes from the contract and the maturity of the debt." I do not understand this statement. It means that a person who lends someone money gets compensated with extra money for the time he allowed the debtor to pay back the amount. It is mentioned in the text that this is fine. How is that not Riba?
No, it does not mean if someone lends money to someone else an increase may be requested from the lender. If that was the case then yes this will constitute riba.
What this means is: it is permissible for a trader trading with merchandise to have two prices, a cash price, and a slightly higher than cash price for merchandise sold on credit.< Back to Questions