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The question

Is it permissible to resort to a bank guarantee that entails usurious interest, due to the company's lack of liquidity and the cancellation of the deal if there is no guarantee, and the absence of Islamic banks in the country?

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Source: FtawySummarized from the full answer at Ftawy · imported Sep 2, 20261 min readAlso available in العربية
The answer

It is not permissible to issue a bank guarantee that is not covered by the client's balance if the bank takes money in exchange for its guarantee, because this ultimately leads to a loan that draws a benefit, which is forbidden by the consensus of scholars. The cancellation of the transaction and the impoundment of the financial guarantee do not affect this ruling, because the company proceeded to enter the transaction knowing its inability to provide a permissible bank guarantee.

Summarized from the full answer at Ftawy · imported

Read the full answer on Ftawy
Source platform
Ftawy
Original fatwa ID
76418
Imported
Translation status
Source text, unreviewed
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