For those who asked about 𝐄𝐚𝐬𝐲𝐛𝐮𝐲 phone loan “installment plan”:
From my research, I can conclude their plan is usury and haram. The basic plan is a loan which its maximum is ₦50,000. You subtract the ₦50k from the total amount of the phone and pay the value as downpayment. They give an “installment” repayment of the loan with an interest inclusive. They have 3 durations to pay the loan; 3 months, 4 months and 6 months.
Then if the borrower didn’t pay as scheduled, they will lock the phone and the interest keeps increasing. If it should be penalty for not paying the loan at when due, the phone lock should be enough, but they go by still increasing the loan interest rate, which makes such transaction haram. This is their basic agreement and if you think you are certain to repay within the agreed period and the fine won’t bounce on you, for them to have such conditions in their agreement, it means the transaction is based on that, which is HARAM.
This is just another form of Riba given the name installment plan. Students should take note.
For detailed explanation on acceptable installment plan, you can search “Installment Loan” in the blog of this site.
4 Responses
But I came to realize that they didn’t just give you a loan they gave you a device whose price keep increasing with the exchange rate in our country Nigeria. And by the three months you will pay up the loan, the phone may have appreciated to that value eventually. What do you have to say about this sir?
Businesses are done based on the present reality. They will also sell what they bought at the current market price. That is the reason we explained the difference between this kind of business and installment. The installment increment is halal and care for the sample you v cited. But to keep increasing the interest after the default, that makes it haram.
I collect the phone of 135k and I paid on time as I agreed 💯 is there any haram ?
The basis of their contract is where the problem lies