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What is the ruling on leasing an uncovered bank credit of 100 million for one year for 5% of its value, knowing that the lessee will use it to obtain investment facilities, and does the ruling apply to the intermediary who completed the contract?

1 min readAlso available in العربية

It is not permissible to lease a letter of credit for a fee, because it involves taking a fee for a mere guarantee, which is prohibited by Islamic law according to the majority of scholars. Sponsorship (kafalah) is a contract of donation and assistance, and it is not permissible to take compensation for it, because it resembles a loan that brings a benefit. It is also not permissible to take a fee for a letter of guarantee. If a transaction is impermissible, then mediation in it and taking a fee for it are also impermissible. When Allah prohibits something, He also prohibits its price. Furthermore, prohibited benefits cannot be compensated.

Summarized from the full answer at Ftawy · reviewed Sep 2, 2026

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