The penalty for delaying the payment of car installments
Machine translationRead the Arabic original
Question:
A questioner says: May Allah reward you. Some banks have cars for sale on installment, but there is a condition: if the buyer delays paying an installment, the bank requires him to pay a penalty to the charitable association. Is this permissible?
Answer:
Riba (usury or interest). This is riba, riba. It is not permissible. It is not permissible to increase the debt of the debtor if he delays. This is the riba of the pre-Islamic age of ignorance (jahiliyyah). In the jahiliyyah, if a person delayed repayment, they increased his debt. This is the riba of the jahiliyyah.
A questioner says: May Allah reward you. Some banks have cars for sale on installment, but there is a condition: if the buyer delays paying an installment, the bank requires him to pay a penalty to the charitable association. Is this permissible?
Answer:
Riba (usury or interest). This is riba, riba. It is not permissible. It is not permissible to increase the debt of the debtor if he delays. This is the riba of the pre-Islamic age of ignorance (jahiliyyah). In the jahiliyyah, if a person delayed repayment, they increased his debt. This is the riba of the jahiliyyah.
Source
شرح كتاب فتح المجيد في شرح كتاب التوحيد [ صالح الفوزان ]، تابع شرح البسملة — islamhouse.com (1:05:49)
The Arabic text is a machine transcription of the audio recording.