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EMI is a payment schedule, not a type of contract, so it cannot be halal or haram as a category. The whole test is whether you end up paying more than the cash price because you were given time.
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What the item costs if you pay in full today.
The EMI amount you would pay each month.
How many instalments in total.
One-time fee charged to set up the plan. Enter 0 if none.
Documentation, insurance add-ons, anything else. Enter 0 if none.
Enter the cash price, the monthly instalment and the number of months. The answer appears here as you type.
Riba is a defined increase paid in exchange for time. If a lender gives you money and you return more, the excess is riba. But if a seller gives you goods and you pay a higher price because you are paying later, the analysis is different — and that is where most of the confusion lives.
Islamic law permits a deferred-payment sale, known as bay' mu'ajjal, in which the credit price is higher than the cash price. A seller may price the same goods differently in different transactions, and a sale on credit is a different transaction from a sale for cash. What is required is that the total is fixed and known when you sign, and that it can never increase afterwards for any reason.
A plan can pass the totals test and still be a loan. If the agreement states an interest rate, money was advanced rather than goods sold. If your instalments go to a bank rather than the shop, the seller has already been paid in full and you have taken a loan to pay them. And if the late fee grows the longer you are late, you would be paying more because more time passed — which is the definition, even when the headline price matched.
The common structure is that the merchant absorbs the financing cost as a marketing expense and you pay exactly what a cash buyer pays. Many contemporary scholars permit this: you paid nothing for the deferral, so no riba entered your transaction. A more cautious view notes that a loan contract still exists between you and the bank in the background.
Both views accept the same practical test, which is what this tool automates: get the cash price in writing, get the total of every payment in writing, and confirm they match. A large share of no-cost offers quietly reinstate the cost through a processing fee.
Converting an existing card purchase into instalments almost always carries an explicit interest rate plus a conversion fee, and the underlying transaction is a loan from the card issuer rather than a sale by a merchant. This is the clearest impermissible case among common EMI arrangements.
This tool does arithmetic and states a general principle. It is not a fatwa on your specific agreement. For a contract with unusual terms, read the full answer on whether EMI is haram in Islam or ask Advisory with your details.