Is it permissible for the guarantor to stipulate taking half of the loan from the guaranteed in exchange for his guarantee, with the amount remaining as a debt owed by the guarantor and his commitment to repay his share to the lending party?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
Jurists prohibit taking compensation for a guarantee () because it is a contract of benevolence (irfaq), not exchange (mu'awadah). It is not permissible for the guarantor (kafil) to stipulate to the guaranteed party (makful) that he lend him a portion of the loan he intends to take, because every loan that draws a benefit is usury (riba). This loan draws a benefit for the lender and is considered a price for the guarantee, which is not permissible. The fact that the borrower repays the loan directly to the lending institution does not change the ruling of the matter.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/109654
Where this answer came from
- Source platform
- Ftawy
- Original fatwa ID
- 109654
- 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