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Is it permissible for the company to impose a fine for late payment of apartment installments, knowing that the sales contract stipulates a 3% fine, and that the company had not applied it previously but began to demand it after incurring losses?

1 min readAlso available in العربية

Imposing a financial penalty on a buyer who is late in paying loan installments is a usurious and forbidden condition. It is not permissible to enter into a contract that includes it. Working to collect this forbidden penalty is not permissible, and it is not permissible for the questioner to undertake this work unless there is a religious necessity that permits the commission of what is otherwise forbidden.

Summarized from the full answer at Ftawy · reviewed Sep 2, 2026

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