Question Summary:
What is the difference an interest policy and paying in installments?

Question Detail:

 
Q1.  According to your fatwahFatwa#: 31134 it is permissable to purchase items on installment with extra amount but it is same as interest policy. But suppose he is charging 5% on total amount as a installment policy, it will be a interest. Is it permissiable or buying car on Emi through bank is it permissable, please give logical answer.
Q2. I m from India and I am working in a school with females teachers they are non muslims, they dont keep pardah. It permissble for me to work in this istitution.
 
Jazakallah

Answer :

In the Name of Allah, the Most Gracious, the Most Merciful.
As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.
1) Fatwa #31,134 stated the following:
It is permissible to sell and purchase on installments on condition the final purchase price and terms of payments is mutually agreed upon, even though the installment price is more than the cash price. In the example cited, it is permissible to purchase an item for R3300 payable over three terms, even though the cash price would be R3000.^[1] 
You seem to be confusing the extra payment on a credit transaction (installments) with obtaining a car through the bank. There is a difference between the two. In a credit transaction, there is a purchase and sale taking place, not a loan. In the case of a bank, there is a loan taking place and the bank charges extra over the loan; that is interest. The excess in a credit transaction is profit. A profit is permissible whilst interest is haram.^[2]
 
2) Shari’ah prohibits one from unnecessary interaction with the opposite gender. If there are females at the work place, lower your gaze and avoid interaction with them. Allah Ta’ala says in the Qur’an:
قُلْ لِلْمُؤْمِنِينَ يَغُضُّوا مِنْ أَبْصَارِهِمْ وَيَحْفَظُوا فُرُوجَهُمْ ذَلِكَ أَزْكَى لَهُمْ إِنَّ اللَّهَ خَبِيرٌ بِمَا يَصْنَعُونَ . وَقُلْ لِلْمُؤْمِنَاتِ يَغْضُضْنَ مِنْ أَبْصَارِهِنَّ وَيَحْفَظْنَ فُرُوجَهُنَّ
Translation: Tell the believing men to lower their gazes, and guard their private parts. That is purer for them. Verily, Allah is All-Aware of what they do. And say to the believing women that they must lower their gazes and guard their private parts. (24:30-31)
And Allah Ta’āla Knows Best
AbdulMannan Nizami
Student Darul Iftaa
Chicago, IL, USA
Checked and Approved by,
Mufti Ebrahim Desai.