[abomokhtar]

What is the permissible rate of profit in cash and installment sales?
Answer
Allah the Most High says:
But God has allowed trade and forbidden usury. [Qur`an 2:275]
Islamic law does not specify a maximum or minimum rate of profit in cash and installment sales. However, we advise the inquirer to be merciful with those he deals with and not to overcharge others. The Prophet [pbuh] said, "May Allah have mercy on the man who is generous when he buys, sells, and demands (his due)" [Bukhari].
The above answers the question and Allah Almighty knows best.
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