What is the ruling on a bank loan that does not charge interest (0%) but imposes a one-time processing fee of 2.99% for the file?
Source: FtawySummarized from the full answer at Ftawy · imported Sep 2, 2026
It is not permissible to borrow from a bank with a stipulated increase (interest/riba), unless the increase is a fee for processing the loan file only, provided it does not exceed the actual direct expenses. Any increase beyond that is forbidden.
Summarized from the full answer at Ftawy · imported
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- Original fatwa ID
- 178162
- Imported
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