Is it permissible to issue a bank guarantee under the bank's sponsorship in exchange for a fixed administrative fee or benefit?
A bank guarantee is either a suretyship (not fully covered), an agency (fully covered), or a suretyship and agency (partially covered).
If it is a suretyship, the bank is not entitled to a fee for it, because suretyship is a contract of benevolence (irfaq). The bank may take a lump-sum fee for administrative expenses if the service provided by the applicant is equivalent to these expenses, provided that the benefit is permissible.
If it is an agency, the bank is entitled to a fee for its work in issuing the letter of guarantee, and the applicant may offer a known service in return for this fee, provided that the benefit is permissible and does not involve aiding in usury.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
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- Ftawy
- Original fatwa ID
- 72477
- Added here
- . This is when the answer was added to El Fatwa, not the fatwa's date.
- Text
- Summary from Ftawy's records, reviewed by El Fatwa's sharia committee.
- Read the full ruling
- Read the full answer on Ftawy