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  • Islamic Sharia

    Selling Air Tickets & Hotel Bookings On Installments

    Posted by S on March 28, 2025 at 10:19 pm

    I run a travel agency in UK. We sell air tickets and hotel bookings.

    We offer instalments payment options but with higher prices is that added amount is sood(riba)?

    Please guide! JaZak Allah!

    S replied 1 year, 6 months ago 2 Members · 4 Replies
  • 4 Replies

  • Selling Air Tickets & Hotel Bookings On Installments

    S updated 1 year, 6 months ago 2 Members · 4 Replies
    Islamic Sharia

  • Umer

    Moderator March 28, 2025 at 11:09 pm

    Demanding profit on loan is Riba (Sood) and is Haram in Sharia.

    In this particular arrangement, there is no loan transaction, rather a service is being sold in installments and for deferred payment of this service, you are charging extra. It is a sale-purchase transaction, not a loan arrangement. Therefore, there is no element of riba in this transaction.

  • S

    Member March 28, 2025 at 11:36 pm

    Thanks a lot for your prompt response!

    Now we have another situation, some of the customers don’t pay their instalments within due date.

    Could we charge them late payment penalty?

    If yes then should we charge a fixed amount penalty or the percentage of due amount? Also per day or once?

    Thanks!

    • Umer

      Moderator March 29, 2025 at 12:05 am

      Yes, you can charge them penalty for late payment. The mode of calculation may vary depending on the business model and relevant industry practices.

      On a related note, late payment surcharge can also be charged even in a loan arrangement.

  • S

    Member March 29, 2025 at 12:15 am

    Thanks a lot! JaZak Allah!

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