Advanced search
Visit
5650
Last Updated: 2011/10/02
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
Please enter the value
Example : Yourname@YourDomane.ext
Please enter the value
Please enter the value

Thematic Category

Random questions

  • What is the opinion of Imam Khomeini on the issue of nationalism?
    15049 System 2011/10/22
    By researching reliable sources such as the ‘Sahifeye Noor’ and ‘Sahifeye Imam’, which contain the entirety of the Imam’s words, sermons, and letters, we find that such a statement cannot be found; therefore the above mentioned statement is unauthentic and cannot be ...
  • Is it mentioned in the Quran that white people are better than yellow, red, brown and black colored races?
    28511 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. ...
  • Do any limits in number apply to temporary marriage?
    5803 Laws and Jurisprudence 2009/08/22
    The hadithic and Quranic reasoning for the permissibility and validity of temporary marriage is so much that no one can deny it and say that they are all unauthentic or forged. Of course, it can be concluded from the whole of these hadiths that one who ...
  • What is sex change?
    6872 احکام تغییر جنسیت 2012/08/23
    Although dictionaries do not provide a definition for "sex change", it means any change and transformation in a male, female or genderless in such a way that the current state is different from the previous one. Medically speaking, sex change is different from "genetic modification" ...
  • What kind of wilayah (authority) did the Holy Prophet (s) mean in Ghadir Khum?
    7189 Traditional 2012/03/14
    Considering that the Prophet (s) appointed the Commander of the Faithful, Ali (a.s) in an absolute and general way, the Holy Prophet's authority in its entirety, irrespective of whether it is mystical, religious or political, is also proven for Ali (a.s.). ...
  • Why is rabbit meat haram?
    48194 Laws and Jurisprudence 2009/02/08
    There are hadiths that tell us rabbit meat is haram. Therefore, this is Allah’s (swt) rule on the matter, and we have to follow Allah’s (swt) orders because they are His orders, not because in some cases we might know the some of the many reasons behind them. ...
  • Is the repentance of a person who is committing a sin and is determined to repent later on accepted?
    5815 Practical 2011/04/20
    True repentance has certain conditions that if done with those conditions, it will be accepted by our kind and compassionate Lord. These conditions are as follows: 1- Committing the sin out of ignorance and foolishness 2- Not being aware of death 3- Regretting the sin 4- Deciding not ...
  • Do we have more than one “nafsul-amr” religion?
    5985 Philosophy of Religion 2008/10/12
    Both what our minds and intellects and what the Quran and hadiths say are good proof that all humans are common in the “gem of humanity” that they possess (meaning that they have the potential of reaching high stages of nearness to God and perfection). Therefore, the “nafsul-amr” ...
  • Can one marry the sister of a boy he would commit sodomy with in childhood?
    8433 Laws and Jurisprudence 2010/12/21
    This question doesn’t have a brief answer. Please click on the detailed answer. ...
  • What are Nafilah prayers and how are they to be performed?
    25858 Practical 2009/08/29
    The term Nafilah or Nawafil refers to all mustahabb prayers; in other words, mustahabb prayers, which are all prayers other than the obligatory daily prayers (seventeen rak’ahs), are all nafilahs. Many different mustahabb prayers or nafilahs have been taught and pointed to ...

Popular