What is the ruling on withdrawing an overdraft from an Islamic bank, which deducts an additional amount as a fee for employees in exchange for disbursing part of the salary in advance?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
Overdraft is a loan to the client, and taking a percentage on it is considered usury (riba). However, if the bank takes a lump sum, then if it is reasonable and equivalent to the work performed by the bank, it may be considered fees and administrative expenses. Otherwise, it is a trick to justify usury.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/70522
Where this answer came from
- Source platform
- Ftawy
- Original fatwa ID
- 70522
- 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