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I am planning to purchase a phone for £25 upfront payment and £25.52 and over 24 months it is £637.48 for the iPhone 7, however, the Buy It Now price is £539, I am aware this includes interest but is this considered as riba as I am simply just trying to purchase an item

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  • There is no riba in this transaction. It's completely legitimate because the full price is known upfront. – Hosam Aly Jan 21 '18 at 0:14
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    I have a feeling there are many sumayah's editing/answering and changing this post please consider sticking on one account and you will be able to edit the post without creating a new account. – Sassir Jan 22 '18 at 17:40
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another way you can buy this is getting the iPhone 8 from apple (£37,50/pm and £69 upfront) and it includes no interest so no riba at all but if you dont want to spend that much money then you basically don't have a choice so im pretty sure you can go for it

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    This is a workaround not an answer to the actual question! – Sassir Jan 22 '18 at 17:41
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This is a really great question. As you will see on the following article, the majority of scholars, including the four Imaams, were of the view that it is permissible and they provide their proofs from the Quran and the Sunnah. Some ulema, whoever, rule such transactions are prohibited on the grounds that it is the same as Riba. They argue that the increase in price in return for the deferment is a form of Riba. From what I have read on the topic the stronger opinion, given that it is also the held by the majority, is the former one. You can read more details at the following link https://www.islamweb.net/en/article/135440/paying-through-installments

There is also a discussion of this topic in Majma’ Al-Fiqh Al-Islami which rules such transactions are permissible. I think it is online by google-ing "paying in installments Islam" Allah knows best.

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  • There is also what is called a "Purchase Order Muraabahah" (which is different than the questioner's query) in which a customer promises that he will purchase the goods from the seller, and then the seller purchases the goods to sell it to the orderer with a specified profit. This type of transaction has been ruled as prohibited if there is a condition that a fine is imposed in case of delay in paying the installments; even if the fine is given to charity. This condition is considered invalid. See islamweb.org/en/fatwa/270868/… – Dr Bartolla Marble Dec 6 '20 at 18:11

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