What is the ruling on the debtor offering to pay a percentage of the profits (21%) for each period of delay in repaying the debt after the agreed-upon term ends, and is the lender entitled to demand compensation for the depreciation of the currency?
If the money is a loan, it is impermissible to take an increase on it. An increase in exchange for a loan is prohibited usury (riba), and any agreement upon it is void.
If the money is a (partnership) and it becomes فاسدة (invalid/corrupted) due to a condition guaranteeing the agent (Mudarib) the capital, then the owner of the money is entitled to the capital and all profits if any exist, and bears the loss if it occurs. The Mudarib is entitled to a fair wage (اجرة المثل).
The debtor's delay or procrastination does not permit taking an increase on the loan. The original principle is that the debt is repaid with the same currency. The debtor is not obligated to switch to the value (of the currency) due to a change in the currency's value, though some scholars are of the opinion that one should switch to the value in the event of a significant change.
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