ANSWER:

When someone is late for paying a commitment, this commitment is a loan and any late fee would be riba

QUESTION: You mentioned in your previous response that it is not permissible to impose late fee on deferred deposition in fund when any members fail to deposit within the deadline every month, even if there is no lending/borrowing but only fund raising taking place. Is this because the late fee is riba or for other reasons?

Halal/Haram Matters, Riba |