Debt and Loan: Permissibility of Requiring Full Repayment Upon Borrower’s Delay in Instalments

Practical Laws of Islam as per the teachings of Imam Khamenei

Debt and Loan: Permissibility of Requiring Full Repayment Upon Borrower’s Delay in Instalments

English:

Question #1765:

When giving loans, ribā-free loan institutions make the condition that if the borrower falls behind with his repayments for two or more instalments, the lender has the right to demand the settlement of the remaining debt at one go. Is it permissible to lend money stipulating such a term?

Answer #1765:

There is no objection to doing so.

-Imam Khamenei, Practical Laws of Islam, Importance and Conditions of Debt and Loan