GUARANTEE FEES AND
ISLAMIC FINANCE: WHAT IS THE BASIC ISSUE??
Islam
prohibits charging of interest for money lending if such is
contractually made compulsory on a borrower and as such has made it
very clear that payment and receipt of interest made compulsory based
on contracts between the two parties is prohibited. However the
borrower is allowed out of his own accord without compulsion to pay
more than what he had borrowed from the lender as a token of
gratitude for the kindness rendered. Money lending must always be
treated as a benevolent contract in Islam that its shall carry no
interest charges.
