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: FtawySummarized from the full answer at Ftawy · imported 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.
Summarized from the full answer at Ftawy · imported
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