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I run a grocery store in Pakistan and sometimes when I run out of cash for purchasing stock I borrow money from a bank which provides credit that I can repay after one month but they also charge processing fees. For example, if I request 50,000 rupees they will give me 49,000 thousand and will charge 1,000 as the processing fees. Is this considered as Riba?
This is indeed Riba, a practise that is prohibited in Islam. The rule is that if a certain amount is given then it must be repaid equally in weight, number, value, etc. and in this case that you mentioned, the person is charging 1,000 extra which is a clear example of Riba.
Allah knows best
Imam Amjad Aziz Al-Azhari
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