Loan service fees, late payment fees, collection fees : service fees and late fees in microfinance
Fatawa Question
[Question One] : Aslamo Alaykum Wa Rahmatu Allahi Wa Barakatuh Dr Kahf, I hope this email finds you well. I am sorry for sending the promissory notes later than the date I specified, I wanted more time to revise and finalize them. Please find attached the two promissory notes that will be signed by ACCION USA and borrowers. The file named "CLEAN-Promissory note with UCC vPQ" is mandatory. The other file is required in case of taking a vehicle as a collateral. I am also attaching a list of other applicable fees and charges that a borrower may pay. Please inform me how many hours you may need to revise the notes. Thanks a lot [Question Two] : Aslamo Alaykum Dr. Kahf, Thanks a lot for your reply. At the beginning I would like to ensure you that in personal terms, I have no intention to be responsible for setting up a loan program that is based on interest, and in no way I have an intention of committing this sin. (I even have never deposit my personal money in a saving account that incurs Riba) I read your reply and I think I should have clarified how we came to the figure of the service fee ; I apologize for not informing you about it. I think I did so because when I asked what documents you need, the promissory notes were the only documents required by you. I based the halal loan service fee on a paper that is published by Islamic Relief named "micro Finance theory, policy, and practice". It tells about its microfinance experience in some countries. Please find attached this paper. Please bear my ignorance in Islamic finance as a non-specialist, I acknowledge myself as from Elaama (people who do not have Islamic education) However, I am a Muslim who is exerting effort to do well. Please find attached a file that explains how we calculated the fees. Thanks a lot Rasha
Fatwa
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Publication Date
2011-03-10
Main Subjects
Financial and Accounting Sciences
Islamic Studies
Topics
No. of Pages
2
Data Type
Fatawa
Language
English
Record ID
BIM-729949
American Psychological Association (APA)
Qahf, Mundhir. 2011-03-10. Loan service fees, late payment fees, collection fees : service fees and late fees in microfinance. .
https://search.emarefa.net/detail/BIM-729949
Modern Language Association (MLA)
Qahf, Mundhir. Loan service fees, late payment fees, collection fees : service fees and late fees in microfinance. 2011-03-10.
https://search.emarefa.net/detail/BIM-729949
American Medical Association (AMA)
Qahf, Mundhir. 2011-03-10. Loan service fees, late payment fees, collection fees : service fees and late fees in microfinance.
https://search.emarefa.net/detail/BIM-729949
