The penalty clause in a loan
Machine translationRead the Arabic original
Question:
He says: Honorable Shaykh, may Allah grant you success, is it permissible for me to lend a man a sum of money and then impose a penalty clause on him, for example, saying, "You must pay ten percent if you delay in repaying it"?
Answer:
This is riba (usury or interest). If you condition an increase on him if he delays, this is riba. Yes. Ah.
He says: Honorable Shaykh, may Allah grant you success, is it permissible for me to lend a man a sum of money and then impose a penalty clause on him, for example, saying, "You must pay ten percent if you delay in repaying it"?
Answer:
This is riba (usury or interest). If you condition an increase on him if he delays, this is riba. Yes. Ah.
Source
الفوزان -أشرطة- شرح زاد المستقنع مع الأسئلة - 053-السلم والرهن والقرض - 9-8-23 هـ — archive.org (1:20:54)
The Arabic text is a machine transcription of the audio recording.