Is a conditional increase on the principal due to late payment of a debt considered usury (riba) if the lender takes it and donates it, and not usury if the lender does not use it for personal benefit?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
Imposing a fine on a borrower for delayed loan repayment is Islamically forbidden and is precisely the usury of Jahiliyyah (pre-Islamic era). The lender's intention to donate the fine amount does not change this ruling. Therefore, the condition of a penalty fine for late payment is null and impermissible.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/143278
Where this answer came from
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- Ftawy
- Original fatwa ID
- 143278
- 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