Permissibility of Charging Fees against Guarantee Fundamental and Analytical Study of Resolutions of (SAC-BNM)

Abstract

This research studies the permissibility of guarantee with fees (kafalah bi al-ujrah) and analyzes it from the perspective of Fiqh and Usul Al-Fiqh, as it is considered one of the important issues in the field of Islamic finance. The issue has been studied in light of the resolutions adopted by the Shari’ah Advisory Council, Bank Negara Malaysia (SAC-BNM) in this regard. The researcher used the descriptive research method on descriptive related studies to describe the issue, while the analytical method was used in analyzing the issue, critically discussing it, and providing solutions to it. Among the findings of this research are: The absence of Qur’anic verses and Prophetic hadiths that forbid the issue does not mean the ability to rely on the two resources i.e., interest and analogy (qiyas, Maṣlaḥah) in the permissibility of charging fees without restrictions. The guarantee corporations should only demand the amount of the debt they have paid on behalf of the borrowers. The guarantee corporations are not allowed to charge any additional amount more than their actual expenses.