Q. Can you charge a profit on a loan?
A. In Shariah, if a debtor takes a loan from a creditor whereby it is agreed that the debtor will pay back the creditor at a later date with an additional amount or rate, it will be tantamount to interest.
Therefore, it is impermissible and Haraam to charge a profit on a loan.
Allah Ta’ala Knows Best
Mufti Ismaeel Bassa