The Ruling on Bank Credit

The questioner:
Peace be upon you. Is bank credit

The Shaykh:
Not bank credit.

The questioner:
Yes.

The Shaykh:
You don't write the first paper, you don't write a paper, but the writing is correct, yes,

The questioner:
and my credit is an order, and he gives an order, so the bank or the bank is ready to pay the amount upon the arrival of the goods.

The Shaykh:
Meaning, the bank is a guarantor for the owner of the goods for a fee, taking the fee from the one guaranteed, is that what you mean? It is not permissible to take a fee for guarantee, because guarantee is a contract of assistance and kindness, and it is not permissible to take a fee for it.

The questioner:
If it was without a fee, would it become a pledge?

The Shaykh:
Yes.

The questioner:
The seller, the buyer.

The Shaykh:
Meaning, the price is placed with the bank, and the bank delivers it upon the arrival of the goods, what is wrong with that? There is nothing wrong with it, okay, yes, but the bank does not take a fee, yes.