Is agreeing with a contractor to pay 2.5% of the total amount in case of late payment after six months considered usury, and what should I do if he demands an annual increase that I did not agree upon?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
It is not permissible to stipulate an increase on a debt in exchange for a delay in payment, as this is explicit usury. The penalty clause is not permissible in contracts where the original obligation is a debt. This condition is legally void, and it is not permissible to pay this increase to the contractor. The contractor must be reminded of the impermissibility of this act and that it is usury. In the event of a dispute, one must resort to the court or arbitration.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/146915
Where this answer came from
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- Ftawy
- Original fatwa ID
- 146915
- 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