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?
Source: FtawySummarized from the full answer at Ftawy · imported Sep 2, 2026
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
Read the full answer on Ftawyhttps://ftawy.com/en/questions/42050
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- Ftawy
- Original fatwa ID
- 42050
- Imported
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