Is it permissible to require a borrower to give a charitable donation if they delay repaying a loan, even if the bank or lender does not benefit from the amount and it is spent on charitable causes? What do the recognized Islamic jurisprudence councils say about this?

"Praise be to Allah, and prayers and peace be upon the Messenger of Allah, and upon his family and companions, thereafter:

The Islamic Fiqh Academy has decided that it is not permissible to impose any increase on the debt for the late debtor in the installment payments because it is usury that is prohibited. It is forbidden for the affluent debtor to procrastinate in payment, and it is not permissible to stipulate compensation for delay.

A penalty clause is permissible in financial contracts except for contracts where the obligation involves debt. It is permissible in contracts of construction, supply, and manufacturing for the manufacturer, but it is not permissible in installment sales or for the manufacturer who is late in payment.

It is not permissible to obligate the late debtor to pay charity or donation, and Islamic banks should search for legitimate means to protect their rights and the funds of shareholders from procrastinators."