To what extent is it permissible for the bank to stipulate financial compensation for late payment of installments in a Murabaha contract, calculated based on the bank's average profits, with the matter subject to the oversight of the bank's Sharia Supervisory Board?
Source: FtawySummarized from the full answer at Ftawy · imported Sep 2, 2026
The we follow is that late payment penalties are absolutely impermissible, and it is not permissible to stipulate compensation for damages in a debt contract of this kind.
Summarized from the full answer at Ftawy · imported
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