Is it permissible for the financier who requests guarantees for funds to pay the money in installments, if he stipulates transferring the liquidity to his account abroad to provide the guarantees?
It is not permissible to take a fee for a guarantee, because it is an act of kindness and goodwill for which no compensation should be taken. Moreover, every loan that draws a benefit is usury (riba). The scenario mentioned in the question combines both prohibitions, as the businessman benefits from the money transferred to his account in exchange for providing the guarantee, and you benefit from lending to him through the guarantee he provides for you. Therefore, we do not deem this scenario permissible. However, if the purpose of transferring the money was merely for documentation, then it would be permissible to reclaim it in installments, given that there is no condition stipulating the reclamation of the collateral in a single payment.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/76230
Where this answer came from
- Source platform
- Ftawy
- Original fatwa ID
- 76230
- 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