Does an Islamic bank charge a late payment penalty if I miss a Murabaha instalment?

Under Sharia, cumulative late-payment interest may not be charged (riba al-jahiliyya, pre-Islamic usury).

If the customer falls behind, the bank charges a late payment penalty as a lump-sum amount agreed in the contract, and Sharia fatwas in Egypt oblige banks to channel the proceeds of these penalties to the bank's charitable donations fund; they do not form part of the bank's commercial profits.