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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?

1 min readAlso available in العربية

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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