Praise be to Allah, and peace and blessings be upon our master, the Messenger of Allah.
There is no Sharia objection to charging the borrower administrative fees imposed on a loan, provided that the fees collected are equivalent to the actual cost of the loan service, without any profit margin for the lender (the fund). This is based on the International Islamic Fiqh Academy Resolution No. (13) (1/3), which states: "First: It is permissible to collect fees for loan services, provided they remain within the limits of actual expenses. Second: Any surplus beyond the actual service costs is prohibited, as it falls under the category of Sharia-prohibited usury (Riba)."
This is because any commission or profit taken by the lender or the guarantor is considered usury and the unlawful consumption of people's wealth.
In principle, administrative fees should be kept in a separate account. If it becomes apparent that the deducted amounts exceed the actual costs, this surplus must be spent on solidarity and charitable causes so that no benefit returns to the fund itself. It is Sharia-permissible to allocate these surplus amounts to solidarity purposes among employees.
In conclusion, the default practice should be to separate administrative fees into a dedicated account. If a surplus remains, it must be spent on solidarity and acts of kindness. There is no religious impediment to allocating these excess funds for mutual solidarity among employees. And Allah the Almighty knows best.
