Agreement with the bank to pay him a sum and collect it from his debtor with interest
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Fatwa number ( 20593 )
Q: I sold goods to one of the merchants on deferred payment for (120 days) through a bank guarantee, and the bank is the guarantor for paying the amount on its due date. Before the due date of this amount, I had an obligation to pay a sum which was a loan from others, and I did not have the amount to pay their debt, and I became in a difficult situation because they are demanding their rights. I asked the bank to expedite the payment of the amounts under its guarantee for this merchant, and it refused to pay except on its date, or to pay it before this date on the condition that it deducts a fee for expediting the payment
of 2% of the total each month, and I have no other means. So is it permissible in the Shari'ah to accept the bank paying the amounts after deducting a fee for each month of expediting, or not? Please issue a ruling, may you be rewarded.
A: This transaction is not permissible; because it is explicit riba; because the bank pays you a sum of money and recovers from the guarantor the amount that is yours with him, which is more than what it gave you, and this transaction combines riba al-fadl and riba al-nasi'ah, so it is not lawful for you; because Allah has forbidden riba and threatened with the most severe threat for it, and the Prophet (peace and blessings be upon him) cursed the one who eats riba, the one who gives it, its two witnesses, and its scribe. And success is from Allah, and may Allah send prayers and blessings upon our Prophet Muhammad, his family, and his companions.
Q: I sold goods to one of the merchants on deferred payment for (120 days) through a bank guarantee, and the bank is the guarantor for paying the amount on its due date. Before the due date of this amount, I had an obligation to pay a sum which was a loan from others, and I did not have the amount to pay their debt, and I became in a difficult situation because they are demanding their rights. I asked the bank to expedite the payment of the amounts under its guarantee for this merchant, and it refused to pay except on its date, or to pay it before this date on the condition that it deducts a fee for expediting the payment
of 2% of the total each month, and I have no other means. So is it permissible in the Shari'ah to accept the bank paying the amounts after deducting a fee for each month of expediting, or not? Please issue a ruling, may you be rewarded.
A: This transaction is not permissible; because it is explicit riba; because the bank pays you a sum of money and recovers from the guarantor the amount that is yours with him, which is more than what it gave you, and this transaction combines riba al-fadl and riba al-nasi'ah, so it is not lawful for you; because Allah has forbidden riba and threatened with the most severe threat for it, and the Prophet (peace and blessings be upon him) cursed the one who eats riba, the one who gives it, its two witnesses, and its scribe. And success is from Allah, and may Allah send prayers and blessings upon our Prophet Muhammad, his family, and his companions.
Source
www.alifta.gov.sa
The Arabic text is copied verbatim from the original source, without any edits.