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Discount On Advance Payment Of Murabaha Installments
Is it permissible for the seller to give a discount to the buyer on advance payments of Murabaha installments?
A discount on advance payments is permissible. However, this is left at the sole discretion of the creditor (i.e. seller). It is not permissible to bind the seller into giving a discount. Therefore, such a discount may not be stipulated or implied either orally or in writing. At the same time, there is no harm in the seller forming a policy whereby one gives a discount upon early payment and makes such a policy known to all customers.

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