Abstract
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.
Hafiz Moazzum Shah, Muhammad Yousuf. (2020) Applications And Shariah Rullings Of Gaurantee In Modern Islamic Financial Institutions, The International Research Journal Department of Usooluddin, Volume-04, Issue-1.
-
Views
604 -
Downloads
33
Article Details
Volume
Issue
Type
Language
