What is the Sharia ruling on the Jordan Islamic Bank's program to support small and medium-sized enterprises, which is based on a Qard Hasan (benevolent loan) product in exchange for administrative fees and specific guarantees, to confront the repercussions of the Coronavirus crisis? Is it permissible for someone in dire need to deal with it in order to save their business and employees, taking into account the current global economic situation?
Similar banking transactions are not permissible except under certain conditions: First, the loan must be a (a benevolent loan), meaning no increase is stipulated beyond the actual cost of processing it, which must be a fixed amount and not a percentage of the borrowed sum. Second, there should be no usurious condition, such as a penalty for late repayment, unless there is a certain necessity and the likelihood of delay is low. Third, it is permissible to stipulate a guarantor or surety, provided that the guarantor does not take a fee for their guarantee. If these conditions are met, then there is no objection to the transaction.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
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