I have a (non-interest bearing) account with a local bank. Typically this account charges a monthly service fee, which is waived as long as a minimum balance is maintained.
If I were to agree to provide a loan to someone, but the only cash I had available would dip into this minimum balance, is it permissible to ask the debtor to repay the loan as well as the incurred service charges?
As an example, I lay out the following scenario:
- I have a bank account which typically charges me $5 a month unless I maintain a minimum balance of $1000, at which point the bank charges me nothing.
- I regularly maintain exactly this minimum balance.
- I agree to loan someone $100.
- This leaves $900 in my account, which is below the minimum balance. As such, the bank charges me $5 in monthly fees.
- I am re-paid the $100 after a period of four months.
As a condition of the loan, is it permissible for me to also demand repayment of these service charges (i.e. $5 * 4 = $20) which were incurred as a direct result, or would that be considered riba?