Is a loan of 400 dinars, to be repaid as 496 dinars over 13 months, with the claim that the increase constitutes "administrative expenses" or compensation for display and sales services, considered usury (riba)?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
A lawful loan is a (a benevolent loan) that is free from interest or usurious increments. It is permissible for the lender to charge fees for loan services, provided these fees do not exceed the actual cost of these services. Any increase beyond that is considered usury, which is forbidden by Islamic law. These fees should not increase with the increase in the borrowed amount or with the delay in the repayment period.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/17494
Where this answer came from
- Source platform
- Ftawy
- Original fatwa ID
- 17494
- 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