Would you please clarify if purchasing goods on rentals are allowed in Islam?
According to what we studied, a fixed percentage of interest is added to the principal amount (current price) of that product to calculate the rental payments (which is received from lessee) for each month's payment.
That's, in lease income schedule prepared by lessor (who gives goods on rentals) includes separate columns for calculation of
- Principal amount (actual price of product).
- Rental Income (actual amount + interest).