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A Study of Installment Sale and Its Formation in the Banking Systems of Iran, France, and the United States

Salimzadeh Naser, Panahi Hadi


Islamic financing through installment sale can be considered as one of the appropriate financial resources for economic and social developments. Installment sales contracts in Iranian banking system are different from those in French and American banking systems. In Iranian banking system, bank is the seller itself and gets involved in the real economy by purchasing the customer's required goods and selling them in installments; but in the French banking system, banks are usually not directly involved in the buying and selling process of goods and installment sales contract, which is regarded as a contractual group, is concluded in completely different ways. In American banking system, the financial institutions get involved in the contracts through financing installment sale. This paper will discuss the methods of installment sales contracts in Iranian, French and American banking systems in order to point out the shortcomings and insufficiencies.


Installment sale, Banking system, Iran, France, United States of America

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