Is it permissible to use bank guarantees for a specified percentage of their value and for a limited period?
Source: FtawySummary from Ftawy's records · added here 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.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/64983
Where this answer came from
- Source platform
- Ftawy
- Original fatwa ID
- 64983
- 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