Taking money from the insurance company with the stipulation that more be paid in the event of delay
Question

                There is a foreign (European) company that provides credit and real estate investment offers to who requires credit facilities, by issuing bonds within three months of signing the contract with them.   

The conditions of this company includes: fixed interest of 7% to be collected yearly. Also the capital money will be returned to the company after 10 years of selling the bonds and paying the yearly interest of 7%. In return for this, the company finances the projects completely. 

The warranty of paying off and returning the capital money:

·        For the credit: warranty of loan or an additional warranty agreed upon between both sides. 

·        For interests: a contract and the warranty of bonds via an insurance company suggested by the financing company. 

The question: 

Is it permissible to deal with this company? It is not an Islamic company, and people who work in it are not Muslims. 

If it is not permissible, then are we allowed to take a loan from this company to be paid off in installments, then to pay the whole loan off before the time of paying an interest comes? This company does not obligate us to pay interest in case of paying off on time and returning the capital money before the time of the interest comes.
Praise be to Allah.
    It is not permissible to deal with this company or with the 
    interest system or insurance system. The former is because it is an obvious 
    riba-based loan and it is well known that riba is haraam and that there are 
    stern warnings against it. The scholars are unanimously agreed that every 
    loan in which additional payment is stipulated is riba. 

    It makes no difference if the riba is with a Muslim or a 
    kaafir, and there is no difference between the one who consumes the riba by 
    taking interest or the one who pays it. 

    Allaah says (interpretation of the meaning): 

    “O you who believe! Fear Allaah and give up what remains 
    (due to you) from Ribaa (from now onward) if you are (really) believers.

    279. And if you do not do it, then take a notice of war 
    from Allaah and His Messenger but if you repent, you shall have your capital 
    sums. Deal not unjustly (by asking more than your capital sums), and you 
    shall not be dealt with unjustly (by receiving less than your capital sums)”

    [al-Baqarah 2:278-279]

    Muslim (1598) narrated that Jaabir (may Allaah be pleased 
    with him) said: The Messenger of Allaah  (peace and blessings of Allaah 
    be upon him) cursed the one who consumes riba and the one who pays it, the 
    one who writes it down and the two who witness it, and he said: they are all 
    the same. 

    Ibn Qudaamah (may Allaah have mercy on him) said: 

    “Every loan in which it is stipulated that something extra 
    must be paid back is haraam, with no difference of scholarly opinion. Ibn 
    al-Mundhir said: [the scholars] are unanimously agreed that if the lender 
    stipulates that the borrower must pay extra or give him a gift, and he lends 
    him money on that basis, then accepting the extra payment is riba. It was 
    narrated from Ubayy ibn Ka’b, Ibn ‘Abbaas and Ibn Mas’ood that they forbade 
    every loan that brings benefits.” 

    Al-Mughni, 6/436. 

    With regard to taking money via the insurance company, with 
    the stipulation that extra be paid in the event of delay, this is not 
    permissible either, even if the person resolves to pay it back. That is for 
    two reasons: 

    1 – This is a haraam, riba-based contract, so it is not 
    permissible to sign it or enter into it or approve of it. 

    2 – A person may delay paying it for some reason or another, 
    such as forgetting, sickness and so on, and so he will fall into riba. 

    Shaykh Ibn ‘Uthaymeen (may Allaah have mercy on him) was 
    asked: Banks give their clients a card called “Visa” which enables the 
    customer to withdraw money from the bank even if there is no money in his 
    account at that time, on the basis that after a specific amount of time has 
    passed, he will repay the bank, and if he does not pay within this set time, 
    the bank will charge interest, more than the amount withdrawn. The customer 
    also pays an annual fee for using this card. Please tell us the ruling on 
    using these cards, may Allaah reward you with good. 

    He replied: This transaction is haraam, because it involves a 
    commitment to pay ribaa 
    (interest) if one does not pay within a certain time. This is an invalid 
    commitment even if a person believes or thinks it most likely that he will 
    pay before the time is up, because things may change and he may not be able 
    to fulfil the commitment. This is a matter which has 
    to do with the future and man does not know what will happen to him in the 
    future. So this kind of transaction is haraam. And Allaah knows best. 
     Shaykh Muhammad ibn Saalih al-‘Uthaymeen, Al-Da’wah magazine, issue 
    # 1754, p. 37 

    Based on 
    this, it is not permissible to deal with this company in the manner 
    mentioned in the question, because it is obvious riba which is forbidden by 
    Allaah and His Messenger. 

    And Allaah knows best.