What is the legal ruling on working for an agricultural company that stipulates charging interest to the customer in case of delayed payment of due installments, even though it may sometimes be waived, in order to ensure their commitment to payment?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
It is not permissible to stipulate a financial penalty on the buyer for late payment of the price. This is a usurious condition, forbidden and void, whether it is a pre-stipulated condition or not. It is not permissible to work in anything directly related to imposing this forbidden penalty, as it involves assisting in sin. However, if the work in the company is not directly related to imposing this penalty, then there is no objection to it. Such a condition can be dispensed with through lawful means such as a guarantee (), collateral (daman), pledge (rahn), or stipulating the annulment of the contract upon delay.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/196031
Where this answer came from
- Source platform
- Ftawy
- Original fatwa ID
- 196031
- 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