What is the ruling on taking an advance salary from the bank in exchange for a fixed fee?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
This transaction is a loan from the bank to the employee, repaid from their salary. The transaction is permissible if the added fees are equivalent to the actual administrative costs incurred by the bank. It is stipulated that the added amount must not be tied to the value of the loan and its value must genuinely correspond to the bank's cost; otherwise, it is considered prohibited usurious increase. Allah Almighty says: (O you who have believed, fear Allah and give up what remains [due to you] of interest, if you should be believers).
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/17394
Where this answer came from
- Source platform
- Ftawy
- Original fatwa ID
- 17394
- 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