Can a bank calculate the mark - up interest along with equated monthly installments as a new amount and then conclude a new refinancing contract to obtain interest and penalize the borrower if they make late payments on loans? - Questions Archive - IslamQuest is a reference for Islamic questions on the internet

Text
Thematic Category
Question keywords
Question code number

Question

Answer

Question or Answer

Advanced search

Please Wait

Visit
6962

Last Updated: 2011/10/02

Website code number fa8501 Archive code number 17092

group Laws and Jurisprudence

Summary of question

Can a bank calculate the mark-up interest along with equated monthly installments as a new amount and then conclude a new refinancing contract to obtain interest and penalize the borrower if they make late payments on loans?

question

In case, repayment of government loans is delayed under civil partnership, can the bank calculate the mark-up interest along with the delinquent installments as a new amount and then conclude a new refinancing contract? Obviously, the new interest includes all the previous penalties and loan interests.

Concise answer

The answers received from the offices of the grand jurists are as under:

Office of Grand Ayatollah Sistani (may Allah grant him long life):

Any kind of interest levied on loan is considered to be usury and haram.

Office of Grand Ayatollah Makarem Shirazi (may Allah grant him long life):

The bank can receive the previous interest as it was based on Islamic contracts. Nothing else associated with the loan is allowed.

An answer given by Ayatollah Mahdi Hadavi Tehrani is as under:

1. The penalty for late payment of installments which is calculated on percentage basis is not free of objection.

2. Regardless of the first point, if the previous loans are cleared and then a new loan with equal amount left from the previous loan plus the penalty and interest of the loans are taken together and a new (refinancing) contract is concluded, there would be no problem in it.

Link to Istiftaat Website (code 141) .

Detailed Answer

This question does not have a detailed answer.

Question translations in other languages

Comments

Number of comments 0

Thematic Category

Random questions

Is the listener of backbiting an accomplice in the sin of the backbiter?

6083 غیبت، توهین و تجسس 2021/03/31
Why has Fatimah Ma’sumah been given the titile ‘Ma’sumah’; is she an infallible?

7335 Traditional 2012/04/18

The name of Lady Ma’sumah, is Fatimah. In historical books and hadith sources, her eminence is referred to as Fatimah bint Musa ibn Ja’far. She wasn’t technically an infallible, the way the prophets and imams were, although she was at a very high level of spiritual purity ...
What is the ruling on eating the cheese contains rennet?

9288 Laws and Jurisprudence 2014/04/20

What the rennet is a substance or strong material we add it to milk in order to make cheese. This material seemingly prepares with the two methods that are as under: 1. via vegetarian mushroom. 2. via the material that exist in animal stomach. Thus, if the ...
Is it not malevolent to pray that someone be deprived of God's mercy? Why do we curse someone who is dead?

8438 Traditional 2011/06/14

Yazid and his likes were cursed by God, the Exalted, the Prophet (pbuh) and his noble successors (a.s.) who are the embodiments of divine mercy towards the rest of God's creatures. Some people are disobedient and they, despite knowing the divine religion and divine punishments for sinning, not only ...
How would it be possible to explain unity of being in simple words?

7821 وحدت وجود 2013/02/02

Wahdatul Wujûd means to believe that all the entities (things present around us) are an indication of Allah’s presence and to believe that everything besides Allah is subjective or just shadows and epiphany of the Truth. Conclusively there is no multiplicity in God, the Real Wujûd as ...
Did Imam Hasan and Imam Hussain (pbuth) artificially dispute with each other in order to teach an old man how to make wudu?

11084 Hadith 2015/06/08

It has been narrated in some resources that Imam Hasan and Imam Hussain (pbuth), as children, taught an old man, in a good manner, how to make wudu properly, as follows: One day an old man came to Medina. At the time of prayers he began to ...
Is it mentioned in the Quran that white people are better than yellow, red, brown and black colored races?

36955 Exegesis 2010/02/09

The verse mentioned above does not say that white people are better than other races, actually it has nothing to do with the abovementioned issue, the words used in the verse may seem to relate to races but they have a meaning other than being black and white. ...
How was the Holy Quran compiled?

16731 Quranic Studies 2012/04/21

According to the history of the compilation of the Quran, the Prophet (s) himself chose the verses where to be placed. It was not the companions who arranged the verses or the number of the chapters. The Quran, which is presently in our hands and which is ...
Is it permissible to eat chips containing porcine enzymes?

7540 Laws and Jurisprudence 2012/01/19

The grand maraji’ responded to this inquiry like this:The office of the grand Ayatullah Khamenei:In the case of the question it isn't permissible.The office of the grand Ayatullah Makarem Shirazi:It isn’t permissible.The office of the grand Ayatullah Safi Golpaygani:If ...
Do animals possess souls and if so how does the animal soul differ from the human soul?

9551 Islamic Philosophy 2011/08/15

Before embarking on the answer to this question, it must be noted that the answer provided below is based on the school of Transcendent Theosophy, i.e., Sadrian philosophy. In this light, the answer will be expounded under two main headings and several subtopics.

How is Prophet Adam’s (A.S.) creation (about 5,764 years ago) make sense when fossils found from human beings are almost 25 million years old?

152342 Exegesis 2012/01/15

There is no inconsistence between these two. If we have heard that Prophet Adam has been created six to seven thousand years ago, this might refer to a different and new generation of human beings which started with Prophet Adam (A.S.) and might ...
Is lobster, clam, oyster and octopus halal?

110163 Laws and Jurisprudence 2012/02/18

Eating lobster, clam, oyster and octopus is haram. According to religious resources regarding halal and haram meat, there are general rulings and numerous standards; for instance, a set of rulings has been given for land animals, sea creatures, birds and so on.The condition for halal meat sea ...
Why are shrimps halal and crabs haram? What makes one of them halal and the other halal despite the fact that both of them are from the same category?

107986 Philosophy of Religion and Law 2012/03/18

Although all Islamic laws are a result of the benefits or disadvantages and harms that back them, and there is a particular reason behind each and every one of them, discovering the exact reason in detail for every one of them is extremely difficult. The most we ...
What is meant by Sidratul-Muntaha that the Quran has mentioned?

107621 Exegesis 2010/04/07

This question doesn’t have a brief answer. Please click on the detailed answer. ...
Is there any problem in sweeping and cleaning one”s house at night?

106138 Hadith 2015/06/07

1. Having conducted a research into Hadith (scriptural) sources, we found out that the narrations about cleaning, dusting and sweeping a house are absolute and unrestricted in the sense that they include both day and night. There is nothing to indicate that dusting and cleaning are forbidden ...
Can a Sunni girl get married to a Shia man and why? Please list the reasons.

103085 Philosophy of Religion and Law 2009/04/20

The popular viewpoint amongst Shia scholars and jurisprudents is that a Shia man can get married to a Sunni woman, but there is a difference of opinion regarding the marriage of a Sunni man with a Shia woman; most scholars see it as impermissible.The reasons behind the first ...
What is the definition of "Muslim" according to the Quran?

90340 Exegesis 2010/04/06

According to the Quran a Muslim is one who has absolutely surrendered to Allah and his commands and believes in pure Tawhid (the oneness of God) that isn't tainted with any Shirk and this is why the Almighty has introduced Prophet Abraham as a true ...
Why hasn’t Imam Ali (a.s.) been mentioned in the Holy Quran?

88801 Exegesis 2008/05/11

One should be aware that although the imam’s names, )especially Imam Ali’s(, haven’t been mentioned in the Quran, nevertheless, their names, )especially Imam Ali’s(, can be found in the Prophet’s sayings. One very good example is the hadith of Ghadir which is considered the official announcement of the appointment of ...
Why do we the Shia pray at three times while the Quran tells us to pray at five times?

80692 Laws and Jurisprudence 2010/08/14

The reason the Shia perform their prayers in three times is the Quranic verses and traditions on the matter. Although the Quran has mentioned that prayer is wajib several times and hasn’t gone into the details, it has spoken of its times: “Maintain the prayer from the sun's ...
What is the way of preventing Ehtelam (having wet dream) during sleep?

66957 Laws and Jurisprudence 2015/01/05

According to Islamic teachings and experience of others, for decreasing concupiscence and preventing Jinabat, please refer to the following recommendations: 1. Avoid dreaming and try to make yourself busy with good things such as reading books (non-sexual ones), heavy exercise, etc. Moreover, remember that idleness can lead ...

Links

Developed by AfarineshWeb

Thematic Category

Random questions

Popular

Links