Is the non-indigent debtor who delays repayment required to return anything in addition to the debt? And is it permissible for the judge to rule on this as a penalty for the delay?

The questioner : The question asks: Is the non-indigent debtor required to return anything in addition to the debt...?

The Shaykh : I mean, if he borrowed, for example, a thousand, is he required to return a thousand dinars?

The questioner : Yes, he was not pressed for it...

The Shaykh : He was not pressed.

The questioner : I mean, he delayed...

The Shaykh : I mean, has this become two questions or just one?

The questioner : Is the non-indigent debtor who delays repayment required to return... the debt?

The Shaykh : So, do you mean in exchange for the delay?

The questioner: Yes.

The Shaykh : If we look at the word "upon him," because the word "upon him" implies obligation, the answer is no. Rather, this is riba (usury or interest). However, it is permissible for him to pay the creditor more than what he took from him; this is among the noble traits of character. In other words, if I borrow a thousand from you for a set term and I pay you back within that term, it is permissible for you to accept a thousand and one hundred, and it is a virtue for me to offer it to you willingly. This is what the Messenger (peace and blessings be upon him) did, and he said in the context of this occasion: . He said this hadith on the occasion when the Messenger (peace and blessings be upon him) had borrowed a camel from a man, and the man came to ask for a camel in exchange for it. So the Messenger (peace and blessings be upon him) said to those around him who were supported by the public treasury: . They went and returned to him, saying: "O Messenger of Allah, we found nothing but a young camel." He said: . This applies to the debtor who paid what was due from him at the specified time. But if he delayed and harmed the creditor because of the delay, it is more fitting for him, and more appropriate, that he increase what he pays in settlement. But we do not say it is "upon him" (obligatory), because in that case it would become riba (usury or interest). The difference between riba (usury or interest) and what the Messenger (peace and blessings be upon him) indicated by his saying: , is that riba (usury or interest) is stipulated; meaning—may Allah forbid it—I borrow a thousand from you on the condition that I pay you back a thousand and one hundred. This is the very essence of riba (usury or interest). But if I borrow a thousand from you and when I give you a thousand, you do not expect an increase, and I give you an increase willingly, this is among the noble traits of character.

Another questioner : ... .

The Shaykh : Regarding the question?

The questioner : ...in it, that the judge should rule against the debtor with a penalty for him in lieu of the delay; is it permissible... compensation, meaning?

The Shaykh : Yes, this is a modern solution to facilitate ribawi (usurious) transactions!!
Please proceed.