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Can schools charge fines for late payment of fees according to Islam?

Answered as per Hanafi Fiqh by Darulifta-Deoband.com
Some schools are charging fines for not paying fees on time. Is this permissible in Islam? Please clarify in accordance to Quran, Sunnah and the fatwa of Fuqaha.

بسم الله الرحمن الرحيم

(Fatwa: 830/779/SD=9/1438)

It is not lawful to impose financial penalty in case of not paying the fee in time.

قال الحصكفي : لا بأخذ مال في المذهب . (رد المحتار على الدر المختار 178/ 3 ط إحياء التراث)

Allah knows Best!

Darul Ifta,
Darul Uloom Deoband

This answer was collected from the official ifta website of Darul Uloom Deoband in India.

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