Q: I applied to the Saudi Industrial Bank for a loan to start a printing press business but the regulations of the
bank impose 2% of the loan on the borrower,
while the loan is to be paid off in full during the coarse of seven years. I did not like this condition and wished to avoid any doubtful matter. So I talked to the responsible people in the bank to find a way out. They agreed to put an estimate for the expenses of studying the constructional, electrical, and technical sides of the project and the costs of those who will travel to
to make sure of the prices of the machines that I have presented and the prices of the ready-made building blocks I intend to buy.The Industrial Bank put an estimate of around 60 thousand riyals which we agreed to pay in advance. After all studies are complete, the bank will calculate its real costs and give me back the difference or claim any additional costs.After the ending the study and taking final decision, the bank writes a contract with the exact amount of the loan without any additional expenses such as the 2%. The loan will be approximately 5 million riyals which will be repaid in installments for 7 years. (Part No. 13; Page No. 417) Please give me your Fatwa regarding this matter. I hope Allah guides you to the right.
If the reality is as you have mentioned, it is permissible to carry on with your transaction with the bank and the money you pay will not be considered Riba (usury).May Allah grant us success. May peace and blessings be upon our Prophet Muhammad, his Family, and Companions.