Debt and Loan: Using Voluntary Extra Payments Made to Ribā-Free Loan Institutions

Practical Laws of Islam as per the teachings of Imam Khamenei

Debt and Loan: Using Voluntary Extra Payments Made to Ribā-Free Loan Institutions

English:

Question #1769:

A borrower paid off the loan he had taken from a ribā-free loan institution. He paid an extra amount to the institution of his own accord. Is it permissible for the officials of the institution to take possession of the money and use it in building work?

Answer #1769:

If, on paying back the loan, the borrower paid the amount of his own free will as a mustaḥabb action when settling a debt, there is no harm in taking it. As for spending it in building work and the like, it should be left to the officials to deal with according to their responsibilities.

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