Guaranteeing One Who Borrows from the Bank
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The first question of Fatwa No. ( 14623 )
Q1: A person wanted to borrow money from one of the banks, and this person asked me to guarantee him to the bank. I refused because I was doubtful about that guarantee; because the bank gives this person a certain amount of money, and when the person returns that money to the bank, the bank asks him for an increase on that money. This is known to be riba (usury or interest). So, is that guarantee included in that riba?
A1: Borrowing from the bank with interest is not permissible, and guaranteeing the borrower is not permissible; because the guarantee is assisting him in sin, and Allah (Mighty and Majestic) has forbidden that in His saying:[Al-Ma'idah 5:2] . And success is from Allah, and may Allah send prayers and blessings upon our Prophet Muhammad, his family, and his Companions.
Q1: A person wanted to borrow money from one of the banks, and this person asked me to guarantee him to the bank. I refused because I was doubtful about that guarantee; because the bank gives this person a certain amount of money, and when the person returns that money to the bank, the bank asks him for an increase on that money. This is known to be riba (usury or interest). So, is that guarantee included in that riba?
A1: Borrowing from the bank with interest is not permissible, and guaranteeing the borrower is not permissible; because the guarantee is assisting him in sin, and Allah (Mighty and Majestic) has forbidden that in His saying:
but do not cooperate in sin and aggression. And fear Allah; indeed, Allah is severe in penalty.
وَلاَ تَعَاوَنُوا عَلَى الإِثْمِ وَالْعُدْوَانِ وَاتَّقُوا اللَّهَ إِنَّ اللَّهَ شَدِيدُ الْعِقَابِ
Source
www.alifta.gov.sa
The Arabic text is copied verbatim from the original source, without any edits.