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Penalty on Late Payment

Answered as per Hanafi Fiqh by CouncilofUlama.co.za

Q: My child attends an Islamic school. They recieved a note saying that if school fees are not paid by a certain date then an amount will be charged daily and the account will be handed over. Is this money they will charge daily after the cut off date permissible?

A: The extra money charged after the cut-off date is impermissible. (Quraan 2:275; Hidaayah 3:78)

Answered by: Mufti Zakaria Makada
Checked & Approved: Mufti Ebrahim Salejee (Isipingo Beach)

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This answer was collected from CouncilofUlama.co.za, which is operated under the supervision of Council of Ulama Eastern Cape, South Africa.

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