Is it permissible for an Islamic bank to impose a financial penalty on a client if they are late in paying the installments for a car purchased by installment?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
Fines imposed for delayed payment of money are usury (riba), and it is not permissible for the bank to impose them. The issue of people evading payment can be addressed by requiring a solvent guarantor or through the courts to compel those who are negligent to pay what they owe.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/47671
Where this answer came from
- Source platform
- Ftawy
- Original fatwa ID
- 47671
- 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