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The question

Is it permissible for a bank to act as guarantor for the purchase of a machine, given the assumption of the possibility of adding interest to the mortgaged amount in the event of default in payment and delay in the sale of the property?

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Source: FtawySummarized from the full answer at Ftawy · imported Sep 2, 20261 min readAlso available in العربية
The answer

This transaction involves several prohibitions: dealing with a usurious bank without necessity, taking a fee for a guarantee which is purely a gratuitous contract, and the stipulated amount to be taken upon delay in selling the property is an interest-based increase, clearly prohibited. Therefore, this transaction is impermissible.

Summarized from the full answer at Ftawy · imported

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Where this answer came from
Source platform
Ftawy
Original fatwa ID
42050
Imported
Translation status
Source text, unreviewed
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