Is the financial penalty for late payment of rent considered usury (riba), and is paying the rent on time without incurring the penalty considered engaging in usury?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
The summary of the answer:
The landlord owns the rent of the house by virtue of the contract, and it becomes a debt owed by the tenant. It is not permissible for the landlord to stipulate a financial penalty on the tenant in case of late payment, as this is usury (riba), which is forbidden. If the contract includes a condition for a late payment penalty, then the contract is forbidden, and it is not permissible to enter into it.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/18288
Where this answer came from
- Source platform
- Ftawy
- Original fatwa ID
- 18288
- 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