What is your interpretation of the two percentages (2%) mentioned in the decision to determine the service fee, given that the loan is (40,0) dinars and is to be repaid over sixty years, and are these two percentages considered part of the permissible service fees, or do they fall under usury, especially since the bank deducts other amounts?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
The 2% that the bank takes from the borrower is usurious interest, not a service fee. Service fees are a fixed amount and are not tied to a percentage of the principal, and lending procedures do not differ based on the loan amount.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/68034
Where this answer came from
- Source platform
- Ftawy
- Original fatwa ID
- 68034
- 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