Is it permissible to use bank guarantees for a specified percentage of their value and for a limited period?
Source: FtawySummarized from the full answer at Ftawy · imported Sep 2, 2026
The gist of the answer: It is impermissible to borrow with a reduced interest rate because any increase in the loan or benefit gained by the lender constitutes riba (usury/interest). There is no difference whether the borrowing is direct or through an agent. Clarification is requested regarding the nature of "guarantees" to determine their ruling.
Summarized from the full answer at Ftawy · imported
Read the full answer on Ftawyhttps://ftawy.com/en/questions/64983
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- Ftawy
- Original fatwa ID
- 64983
- Imported
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- Source text, unreviewed
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