What is the ruling on the social loan granted by a bank to the employees of an entity, in exchange for the bank benefiting from letters of guarantee provided by companies contracting with the entity, with the bank providing services to the entity without interest?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
The company's agreement with the bank to provide services in exchange for employees opening accounts with it is permissible and is not considered a loan that draws benefit, because the benefit is consequential. However, if the bank is usurious (Riba-based), then this falls under aiding in sin and transgression, which is forbidden, unless there are no Islamic banks available, in which case it is permissible to open an account with a Riba-based bank out of necessity.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/97724
Where this answer came from
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- Ftawy
- Original fatwa ID
- 97724
- 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