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
6881

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

Are there any rules, guidelines, and restrictions when it comes to adopting children?

7590 Laws and Jurisprudence 2012/09/01

There is no objection in providing care and protection to a child who is without protection or whose guardians are unable to protect it and who surrender their child with full consent to another person to protect and take care of it. When it comes to taking ...
Why are apostates executed in Islam? Doesn’t that contradict freedom of belief?

13495 Laws and Jurisprudence 2008/12/10

In Islamic terms, apostasy means for one to openly express and show his/her renouncement of religion and usually ends up in others being encouraged to do the same. The punishment for apostasy doesn’t apply to one who has turned away from religion but doesn’t announce it. Therefore, it ...
Please let me how to get rid of masturbation?

9433 Practical 2015/01/05

Sin is like a foul-smelling swamp full of sewage; the more one sinks into it, the less he senses its smell, because he actually loses his sense of smell and can't tell that he is drowning anymore. At the same time, anytime one makes a strong decision ...
What is the Islamic law about smiling at a non-mahram while to talking to her?

8043 Laws and Jurisprudence 2012/01/03

If one smiles at a non-mahram or jokes with her with the intention of deriving sexual pleasure or if it entails evil or it is feared that he might fall into a sin, it is not permissible and it is a matter of objection.Grand religious authorities have said in ...
What is the Islamic law on Forex trading?

18311 Laws and Jurisprudence 2015/05/03

The foreign exchange market (forex, or currency market) is a global decentralized market for the trading of currencies such as rial, dollar, euro, pound, yen, dinar, etc.). If one who intends to trade currency, feels the value of a certain currency is going up, he will buy ...
What is the Islamic law about touching the name "Allah" in different languages without Wudhu? What is the ruling about touching the word "Israel" (which means Abdullah)?

8549 Laws and Jurisprudence 2011/11/21

It is haraam, as an obligatory precaution, to touch the Name of Allah, without Wudhu, in whichever language it may have been written. And it is also haraam to touch, without Wudhu, the blessed names of the Holy Prophet of Islam, the holy Imams and Hazrat Fatima Zahra ...
Why is it necessary to give Sahm-e Imam to a qualified Mujtahid?

8655 Laws and Jurisprudence 2012/05/19

Given the fact that qualified jurisprudents are the general representatives of the Imam of Time (atf) during the period of occultation and that, in order for the Islamic laws not to remain unperformed and the portion of Imam not to be wasted, they are allowed to spend ...
What is the meaning of self-consciousness according to the Holy Quran?

16163 Exegesis 2015/04/18

According to the Quran, self-consciousness means realization of one's own self through nourishing or nurturing and reviving one's own inner and inborn talents and potentialities followed by a profound understanding of the realities of the universe and divine attributes. Self-consciousness has various degrees and it is of ...
How can those who don’t observe the complete hijab study in the Howza?

6112 Practical 2011/04/20

Studying in different fields is always valuable and brings about completion for the individual, nevertheless, reaching values and virtues coming from knowledge calls for some preliminary steps and hardships that have to be taken care of and endured respectively first.Entering the Howza is no exception and may bear ...
Did Mukhtar keep any love of Abu Bakr and Umar in his heart? Why didn’t he defend Imam Hussein in Karbala?

13000 Laws and Jurisprudence 2017/01/24

The traditions about Mukhtar in our sources are divided into two categories; some of them praise and others simply reproach him. The scholars who specialize in hadith and biographical accounts generally choose to rely on the traditions which praise him and they have given their views about ...

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?

151742 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?

109785 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?

107585 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?

107091 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?

105509 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.

102787 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?

90081 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?

88546 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?

80402 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?

66632 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