Increasing the price when payment is delayed in installments

Question:
If the installment period is set at ten months and she made it twelve months, will she be punished? If she set it at ten months and it did not work out, did she write the contract, or did she set it at three months and I will add a hundred to you? Is that permissible?

Answer:
It is not permissible; it is riba (usury or interest), yes. This is either you satisfy [the creditor] or you pay [the debt]. Yes. No, no, this is not permissible; this means increasing the debt. If the debt is delayed, it is increased upon him. Yes.
This is like that, it is invalid; this is a penalty clause, a penalty of ten thousand from the value. He says if you are delayed, every day you are delayed or five days you are delayed, it drops to fifty, it drops to a hundred, and it is an increase upon him, an addition, because it encourages work and benefits the one in need. This does not hide its riba (usury or interest); either you satisfy [the creditor] or you decrease [the amount], yes. Yes. Just as what preceded this from the ijtihad (independent legal reasoning) of the Companions (may Allah be pleased with them and grant them satisfaction). Yes. Yes.