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The question

Is it permissible to issue a bank guarantee under the bank's sponsorship in exchange for a fixed administrative fee or benefit?

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Source: FtawySummary from Ftawy's records · added here Sep 2, 20261 min readAlso available in العربية
The answer

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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Where this answer came from
Source platform
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.
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Read the full answer on Ftawy