A type of sale (ba’i/ bay’) in which the delivery of the object of sale (a commodity) takes place at the time of contract (aqd), while the price (thaman) will be paid at a certain future date, or an a series of installments over the contractual term. In either case (deferred payment sale or installment sale), the deferred sale is usually higher than the cash price. In a deferred payment sale, the price is entirely paid at the end of the contractual term or by a specific time before the end of the term (in which case, the sale is called a nasi’ah sale).
In an installment sale, the price is paid in a number of installments (equal or otherwise) at specific intervals over the contract’s term.
A sale on credit is also known as credit sale or ba’i muajjal.
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