Similarly...

Similarly, if a person were to sell a dozen eggs for fifteen eggs, then it would be a legitimate transaction even though the items are of the same kind because they are not sold by weight. This would be a legitimate transaction u11less the payment bas been deferred. ***** Other related transactions To sell gold in exchange for gold with increment in the price -whether on spot or in deferred form- is forbidden.

Similarly, selling silver in exchange for silver with increment in the price-whether on spot or in deferred form- is forbidden. "Buy Now and Pay Later": The merchant is allowed to fix two different prices for the same item: lower price for cash or higher price for the payment that is deferred to a fixed date. This is valid only if the merchant had 'fixed the price for the deferred payment beforehand.

However, if the deferred increased price is negotiated during the deal itself, then it is riba and is not permissible. For example, if the merchant says that this item is of $ 100 but the customer says that he cannot pay now, he can only pay after a year; and the merchant then proposes that the deferred payment will be $125- that is riba and haram. Moreover, this only applies to items that are not sold by weight; otherwise, it is considered riba and is not permissible.

“Pay Now andReceive Later”: There is no problem in such a transaction as long as the commodity and the price both are not in gold or silver form. Interest in Loan It is haram to charge interest from a Muslim in loan. As far as charging interest from a non-Muslim is concerned, most contemporary mujtahidin have allowed it.[^4] According to the majority of our mujtahids, charging interest is allowed between father and children, and between husband and wife.

* * * When discussing the issue of riba with a former Pakistani businessman in New Jersey a few years ago, I found out that some Pakistani economists have divided the loan into two types: 1."Loan for consumption" (e.g., for advanced study, treatment of an illness, marriage of one's daughter) and 2. "Loan for investment'' (e.g., for buying or expanding a business).

They say that the riba forbidden in Islam only applies to "loan for consumption'' and not to “Loan for investment,” thus allowing charging of interest on a loan given for investment This was also brought to my attention by a friend who reviewed the manuscript of this treatise.