APPLICATIONS AND SHARIAH RULLINGS OF GAURANTEE IN MODERN ISLAMIC FINANCIAL INSTITUTIONS
معاصر اسلامی مالیاتی اداروں میں گارنٹی کی صورتیں اورشرعی احکام
Keywords:guarantee, guarantee agreement, shipping, Kafala, Islamic bank, shariah rulings, Letter of guarantee, letter of credit, Transactions
In the traditional application of Kafal agreement this in not allowed to earn profit from it. But in the modern era a huge volume of national and international transactions is based on guarantee agreement. Banks nowadays provide the facility of guarantee to businessmen in national and international transaction in the form of letter of Credit, letter of Guarantee and shipping guarantee. Being a part of the banking sector, the Islamic banks also need to provide guarantee services. But keeping in view the traditional application of the guarantee agreement that is Kafala, the Islamic banks cannot take remuneration against this facility. Therefore, there is need of shariah analysis of the guarantee services being provided by the Islamic banks. This article proceeds with an introduction of the traditional concepts of Kafal with special reference to different point of views of the Fuqaha. The next parts discuss its kinds and shariah ruling about taking remuneration against guarantee service. The next part discusses the contemporary applications and its shariah analysis. The last part consists of the conclusions and findings of this article.