On what conditions are monetary penalties for late payment halal?
By Faisal Amjad

Can I charge a 'late fee' if payment is not made on time?

Published in: Wealth
Date: 28 / 07 / 19

This is not halal. There is no such thing in Islam. Rather there is such a thing as a security that you deposit with the lender. In case of failure to return the loan, the lender would sell the security deposit and take his money back from the sale. He could sell it at a higher price and profit from the sale too. 

Faisal Amjad

About the author

I am a history buff and love all things business!

Views
241
Shares
0
Followers
16
Stay in the , subscribe to our newsletter.