Guarantee of the Borrower
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Fatwa No. ( 7074 )
Q: By virtue of our work as the Director of Education in the al-Jawf region, some of the region's employees apply to us for bank loans to be repaid in monthly installments from the borrower's salary. Since we are required, as the reference for the borrowing employee, to sign the two attached forms, one of which represents a commitment from us to the bank to deduct the specified monthly installment from the borrowers, and the other represents our commitment to deduct from the borrower's guarantor, who is also assumed to be an employee of the administration. Given that we face pressure from employees who wish to borrow, and whose loans are based on the administration's commitments at the bank, we hope you will kindly clarify the position and role of the administration, including the director, accountant, and treasurer, from a Shari'ah perspective, especially since the bank takes interest from the borrowers. May Allah protect you and reward you with good for us and for all Muslims. Non-cancellable Commitment With greetings and respect, based on the request of Mr. ........ dated 15/4/1404 AH, by which we were authorized to deduct from his salary
the sum of 3000 riyals monthly, starting from his salary for the month of Rabi' al-Thani, until his full obligations to you are settled. We hereby commit, in a non-cancellable manner, to deduct the installment specified above and remit it to you monthly, in settlement of the loan you granted to the aforementioned person, amounting to 30000 riyals only, thirty thousand riyals. In the event that the borrower transfers from his work in this department to another entity, we commit to notify you in writing, immediately, of the entity to which he will be transferred. This commitment is not cancelled until it is returned to you with a cancellation mark. Education Administration of al-Jawf Official Seal Treasurer's Signature Director's Signature Accountant's Signature
A: If the situation is as described, where the bank takes interest on the loan; it is not permissible for the director, nor the accountant, nor the treasurer to cooperate with them in that; because of the saying of Allah the Exalted:[Al-Ma'idah 5:2] , and because it is established from the Prophet (peace and blessings be upon him) that he said: Sahih Muslim 1598 . And success is from Allah, and may Allah send prayers and blessings upon our Prophet Muhammad, his family, and his Companions.
Q: By virtue of our work as the Director of Education in the al-Jawf region, some of the region's employees apply to us for bank loans to be repaid in monthly installments from the borrower's salary. Since we are required, as the reference for the borrowing employee, to sign the two attached forms, one of which represents a commitment from us to the bank to deduct the specified monthly installment from the borrowers, and the other represents our commitment to deduct from the borrower's guarantor, who is also assumed to be an employee of the administration. Given that we face pressure from employees who wish to borrow, and whose loans are based on the administration's commitments at the bank, we hope you will kindly clarify the position and role of the administration, including the director, accountant, and treasurer, from a Shari'ah perspective, especially since the bank takes interest from the borrowers. May Allah protect you and reward you with good for us and for all Muslims. Non-cancellable Commitment With greetings and respect, based on the request of Mr. ........ dated 15/4/1404 AH, by which we were authorized to deduct from his salary
the sum of 3000 riyals monthly, starting from his salary for the month of Rabi' al-Thani, until his full obligations to you are settled. We hereby commit, in a non-cancellable manner, to deduct the installment specified above and remit it to you monthly, in settlement of the loan you granted to the aforementioned person, amounting to 30000 riyals only, thirty thousand riyals. In the event that the borrower transfers from his work in this department to another entity, we commit to notify you in writing, immediately, of the entity to which he will be transferred. This commitment is not cancelled until it is returned to you with a cancellation mark. Education Administration of al-Jawf Official Seal Treasurer's Signature Director's Signature Accountant's Signature
A: If the situation is as described, where the bank takes interest on the loan; it is not permissible for the director, nor the accountant, nor the treasurer to cooperate with them in that; because of the saying of Allah the Exalted:
but do not cooperate in sin and aggression
وَلاَ تَعَاوَنُوا عَلَى الإِثْمِ وَالْعُدْوَانِAllah's Messenger (ﷺ) cursed the accepter of interest and its payer, and one who records it, and the two witnesses, and he said: They are all equal.
لعن الله آكل الربا، وموكله، وكاتبه، وشاهديه -وقال:- هم سواء
Source
www.alifta.gov.sa
The Arabic text is copied verbatim from the original source, without any edits.