Is it permissible to obtain a bank guarantee from non-Islamic banks, along with the reservation of a property for many times the amount of the guarantee, and the collection of small fees whose value changes according to the guarantee?
Perhaps the intended meaning of "bank guarantees" performed by usurious banks is letters of guarantee. Usurious banks, when issuing these letters or guarantees, take a consideration from their clients, which they determine based on the debt's value and duration, as a percentage, not as administrative fees. This is because a usurious bank is a merchant of usurious debts. Therefore, it is impermissible to enter into a guarantee contract with a usurious bank in the manner described, whether with collateral or without, unless the guarantee contract is free from the aforementioned prohibition, and there is a genuine need, and no Islamic bank can perform it.
Summarized from the full answer at Ftawy · reviewed Sep 2, 2026
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