What is the ruling on late payment fees in installment sales, leasing, and construction contracts, how are they handled, and what is the ruling on those who work with them, knowing that their legal nature does not allow for their alteration?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
If the two parties to the contract can stipulate that the value of the interest be zero, then this is what must be done. It is not permissible to conclude a contract that stipulates late payment interest, except out of necessity or a recognized need. The debtor must adhere to the repayment time, and the creditor must avoid late payment interest, due to its unlawfulness. It is not permissible to work in writing or documenting these contracts except out of necessity or a need that is equivalent to it, while searching for permissible work.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/153530
Where this answer came from
- Source platform
- Ftawy
- Original fatwa ID
- 153530
- Added here
- . This is when the answer was added to El Fatwa, not the fatwa's date.
- Text
- Summary from Ftawy's records, reviewed by El Fatwa's sharia committee.
- Read the full ruling
- Read the full answer on Ftawy