The legality of a financial compensation given to the creditor in case of non - payment of a debt in due time is a matter of discord. Before the Islamic Revolution, whether in case of loan or mortgage, the legal amount of this compensation reached 12%. After the Revolution, the Council of Guardians based itself on previous fatwas to announce that such a claim was illegal from a religious point of view. But in fact, considering that this compensation is not an extra amount of money given in addition of the original loan, but a way to cover the losses created by the delay in refunding the creditor and a fine for not respecting the principle which stipulates that “the Muslims fulfill their contracts”, this claim is legal and does not infringe on the rules and principles of jurisprudence.
)