Most-asked question

Can a business charge a late-payment penalty?

9 fatawa in the archive answer questions on this, from 4 South African Darul Iftas (Mufti Online, Azaadville, AskImam, Camperdown). Below, each Darul Ifta’s answer is quoted word for word from the opening of one of its fatawa.

Based on the fatawa linked below. Please read the sources and double-check with a Darul Ifta for your situation.

Consult a mufti for your situation. Fatawa SA is a read-only archive and issues no rulings of its own.

What the Darul Iftas say

“To charge late fees for a due payment is not permissible as it is tantamount to Riba (interest). An alternative is to inflate the rent by 10% and if anyone pays timeously, they will be offered a 10% discount.”

AskImam — Can I charge a penalty for late payments · 16 Sep 2014

“The extra money charged after the cut-off date is interest and hence impermissible.”

Mufti Online — Penalty on late payment of school fees · 18 Feb 2012

Quotes are the opening words of each answer as published; the full answer, its conditions and references are on the fatwa page. Answers depend on the exact details of each question.

Read the fatawa

  1. Imposing Late Fee in ROSCA/CHIT FUND Camperdown · 6 Dec 2025
  2. Penalty Clause In Istisnaa (Construction/Production Contract) Azaadville · 6 Apr 2021
  3. Charging the customer a penalty on late payment Mufti Online · 29 Sep 2018
  4. Can I charge a penalty for late payments AskImam · 16 Sep 2014
  5. Charging a penalty for late payment and calling it admin fees Mufti Online · 27 Nov 2023
  6. Alternative for charging a penalty on late payment Mufti Online · 9 Jan 2020
  7. Charging a penalty for late payment Mufti Online · 28 Sep 2014
  8. Penalty on late payment of school fees Mufti Online · 18 Feb 2012
  9. Charging a penalty for late payment Mufti Online · 18 Feb 2019

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