The Ruling on Imposing a Penalty Clause on the Borrower
Machine translationRead the Arabic original
Question:
Yes. He says: Honorable Shaykh, I ask Allah for guidance. Is it permissible for me to lend a man a sum of money, and then impose a penalty clause on him, for example, I say nineteen percent if he delays in repayment?
Answer:
This is riba (usury or interest). If you lend to him with an increase if he delays, it is riba. Yes.
Yes. He says: Honorable Shaykh, I ask Allah for guidance. Is it permissible for me to lend a man a sum of money, and then impose a penalty clause on him, for example, I say nineteen percent if he delays in repayment?
Answer:
This is riba (usury or interest). If you lend to him with an increase if he delays, it is riba. Yes.
Source
قناة «العلامة الدكتور صالح الفوزان»، 141/82 شرح زاد المستقنع/ صالح الفوزان — youtube.com (11:51)
The Arabic text is a machine transcription of the audio recording.