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Fatwa CenterWants to buy out his business partner in Halal manner
Question
I have a partner who wants to sell his part in an ice cream factory to another party. At the moment I do not have money enough to buy his part.
The question is: I want to borrow the money from an industrial bank in Syria but they will take some interest on this amount of money. Is it Halal?
The second question is that if I wanted to give my partner the value of his share in the factory on installments but with an increase, (lets say that his share is valued by 15,000,000 SP and I decided to give him for example 17,000,000 SP on condition that I give this amount by four or five installments every year), is this considered as interest too? I will be waiting for your valuable answer very soon. Thank you very much.
Answer
All perfect praise be to Allaah, The Lord of the Worlds. I testify that there is none worthy of worship except Allaah, and that Muhammad 
is His slave and Messenger.
It is known that the Islamic Sharee'ah forbids all kinds of Riba (usury and interest) and makes selling lawful. Allaah says (what means): {But Allaah has permitted trade and has forbidden interest.} [Quran 2:275]
Among the forbidden Riba is lending money with interest, whether it is for consumption or investment. Any loan that conditions Riba is forbidden without any difference of opinion among the scholars.
Ibn Al-Munthir 
said: "The scholars 
agreed in a consensus that if the lender conditions on the borrower an interest or a gift, then he lends the money on this basis and takes the interest, then this is Riba."
Therefore, you are not allowed to take a loan with interest to purchase the share of your partner. However, you are allowed to purchase it in installments with a higher price than its present value according to the view of the majority of the scholars because it is known that the delay in payments has an effect on the price. No doubt, this opinion is supported by the general rulings of the Sharee'ah and this facilitates the needs of the public.
However, for this to be valid, the sale should meet the considerable, like both parties should be detemined as to the method of payments, prior to conducting the contract, whether it is by installments or cash, becasue not being determined by one of the the methods, while the buyer has the choice of either methods, then this is like two sales in one sale and the Prophet forbade this.
Abu Hurayrah 
narrated that the Prophet said "Whoever concludes two sales in one, must take the lower price or else the difference (of the two prices) is Ribaa (interest or usury)." [Abu Daawood and At-Tirmithi]
Also, it is a condition that the installments be known, and the time of payment should also be known, Allaah says (what means): {O you who believe! When you contract a debt for a fixed period, write it down.} [Quran 2:282]
Besides, it is confirmed that Barirah, may Allah be pleased with her, freed herself from her masters against 9 Awqiyah of silver, and would pay one Awqiyah every year. This is the sale by installment and the Prophet approved of it and did not forbid it. Thereafter, 'Aa'ishah 
purchased Barirah and paid the installments before the due time."
It is on this basis that the Muslims in the past and in the present time have been dealing with.
Allaah Knows best.
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