If business takes additonal time to clear the payment or if there's any delay in repayment, will business give extra profit for this?

Assalamu'alaikum sir. We understand your concern.

In cases where a business takes additional time beyond the agreed repayment schedule, they are required to pay a penalty as per the contract. However, based on guidance from our Shariah advisors, this penalty amount cannot be distributed to investors as profit or compensation. Instead, it is allocated towards charity.

This means that the profit does not increase due to the delay, and it is also not calculated on the unpaid amount during the extended period. The agreed profit remains as per the original contract.

If you’d like, we can share the relevant documents and detailed explanations to maintain full transparency on this matter.

Updated on: 28/04/2026