Non essential interest clause in a contract : interest clause in letters of credit
Fatawa Question
I have an import business, where I import the goods using L / C facilities (letter of credit) provided by Reba Bank. I deal with this bank due to many restrictions and limitations that exist with the only Islamic Bank in my country in order to provide me with L / C facilities. My question is, is it allowed in Shari’ah to deal with Reba bank as far as I deposit the cash in my company's account before the due date in order to avoid interest charges. The reason behind my question is that I heard from a friend that my L / C contract with the bank is "AQD Sahih", but the clause which states the interest charges after specific dates is "Shart Fassed", and makes the whole contract "Fassed". Please advise
Fatwa
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Publication Date
2002-03-04
Main Subjects
Financial and Accounting Sciences
Religion
Islamic Studies
Topics
No. of Pages
2
Data Type
Fatawa
Language
English
Record ID
BIM-726721
American Psychological Association (APA)
Qahf, Mundhir. 2002-03-04. Non essential interest clause in a contract : interest clause in letters of credit. .
https://search.emarefa.net/detail/BIM-726721
Modern Language Association (MLA)
Qahf, Mundhir. Non essential interest clause in a contract : interest clause in letters of credit. 2002-03-04.
https://search.emarefa.net/detail/BIM-726721
American Medical Association (AMA)
Qahf, Mundhir. 2002-03-04. Non essential interest clause in a contract : interest clause in letters of credit.
https://search.emarefa.net/detail/BIM-726721
