Charging a penalty for late payment

Q: I am an owner of a property which I lease or rent out. Can I charge a penalty for late payments of rental e.g. R100 for everyday late?


A: No. This is pure riba and interest. Save yourself from this widespread severe curse.

And Allah Ta’ala (الله تعالى) knows best.

وَأَحَلَّ اللَّهُ الْبَيْعَ وَحَرَّمَ الرِّبَا (البقرة 275)

الربا هو الفضل المستحق لأحد المتعاقدين في المعاوضة الخالي عن عوض شرط فيه (هدايه 3/78)

Checked & Approved:

Mufti Ebrahim Salejee (Isipingo Beach)