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: FtawySummarized from the full answer at Ftawy · imported 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.
Summarized from the full answer at Ftawy · imported
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- 17494
- Imported
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