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: FtawySummary from Ftawy's records · added here 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.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/42050
Where this answer came from
- Source platform
- Ftawy
- Original fatwa ID
- 42050
- Added here
- . This is when the answer was added to El Fatwa, not the fatwa's date.
- Text
- Summary from Ftawy's records, reviewed by El Fatwa's sharia committee.
- Read the full ruling
- Read the full answer on Ftawy