Debt and Loan: Ruling on Extending Payment Deadline in Exchange for Additional Payment

Practical Laws of Islam as per the teachings of Imam Khamenei

Debt and Loan: Ruling on Extending Payment Deadline in Exchange for Additional Payment

English:

Question #1761:

A person bought merchandise from another. They agreed that the buyer should pay for the goods in three months’ time. However, the buyer could not pay the debt on time. Both the parties agreed that the debtor should be given another three months to come up with the money provided that an additional amount is paid on top of the original debt. Is this transaction shar‘ī?

Answer #1761:

Such an increase is deemed ribā which is ḥarām.

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