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Is the fixing of salary for the purpose of bank financing, along with the waiver of end-of-service benefits to the bank, considered Islamically impermissible?

1 min readAlso available in العربية

It is permissible for the bank to stipulate the transfer of salary or entitlements, or to request a mortgage on some properties as collateral in the Murabaha to the Orderer contract and the Ijarah contract, in order to secure rights and debts. It is also permissible to mortgage bank deposits, whether current or investment, provided that the account holder is prevented from disposing of them throughout the duration of the mortgage. If the bank is the mortgagee, the amount must be transferred to an investment account.

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

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