What is the ruling on penalty clauses in bank loans?
Machine translationRead the Arabic original
Some banks do not take interest, but they include a penalty clause if the borrower delays repayment?
This is the riba of the pre-Islamic age of ignorance. It says: if the term arrives and you do not pay me, you will increase [the debt]. This is the riba of the pre-Islamic age of ignorance: either you increase [the debt] or you pay.
This is the riba of the pre-Islamic age of ignorance. It says: if the term arrives and you do not pay me, you will increase [the debt]. This is the riba of the pre-Islamic age of ignorance: either you increase [the debt] or you pay.
Source
binbaz.org.sa
The Arabic text is copied verbatim from the original source, without any edits.