Search Islamic Finance Answers

1,000+ scholar-approved answers and growing...

Penalties On Late Rental Payments
In case of late payment, can the lessor charge the lessee a penalty?
If the lessee is late in paying rentals, the lessor may not gain any benefit from a penalty, because the money becomes a debt, and any receipt in excess of a debt is riba. Rather, the contract may stipulate that in the event of delayed payment, the lessee must pay a certain amount to a specified charity.

ASK AN ISLAMIC FINANCE QUESTION

Each question is reviewed by an Islamic finance expert and approved by a scholar.

Ask Now »

SEARCH ISLAMIC FINANCE Q&As

Browse one of the world's largest database of Islamic finance Q&As available online.

View details »

What’s New at Ethica

Press releases, live events, book recommendations, discount offers, and more

View details »

sliderFooter
sliderFooter
sliderFooter
sliderFooter
sliderFooter
sliderFooter
sliderFooter
sliderFooter
sliderFooter
sliderFooter
sliderFooter
sliderFooter
sliderFooter
sliderFooter