What is the ruling on benefiting from a bank guarantee that is non-negotiable (not convertible to cash), by reserving it for the benefit of another party for a specified period in exchange for a sum of money, or by permanently assigning it to another party in exchange for a sum of money?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
The guarantor's relinquishment of their guarantee to another is permissible, but it is not permissible to take compensation for it. This is because guaranteeing is a contract of benevolence (irfaq), not one of exchange (mu'awadat), whether the relinquishment is temporary or permanent. Jurists have stipulated the impermissibility of taking compensation for suretyship (), as it resembles a loan that brings benefit, which is forbidden by Islamic law.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/101789
Where this answer came from
- Source platform
- Ftawy
- Original fatwa ID
- 101789
- 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