Charging a fee for late payment
Question
If someone owes you money and does not pay you by the due date, is it permissible to charge him an extra amount as an administration fee or any other fee?
Answer
This is not permissible. It is pure riba (interest) and interest is haraam.
And Allah Ta'ala (الله تعالى) knows best.
References (Arabic / Urdu sources)
الربا هو الفضل المستحق لأحد المتعاقدين في المعاوضة الخالي عن عوض شرط فيه (الهداية 3/78)
- Answered by
- Mufti Zakaria Makada
- Checked & approved by
- Mufti Ebrahim Salejee (Isipingo Beach)
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