Abstract
Financial transactions and agreements play integral part in human life. No one can live without getting involved in some of these in his daily life. In these transactions one lends his money at time and borrows the other time. He gives and takes. Now a day’s honesty is very little to be seen. Everyone wants to gain money no matter source is legal or forbidden. For such kind of situations Islamic Shariah guides us. One of those advices Islam provided is to have mortgage or guarantees and hawala from the one who is borrowing money as a guarantee for receiving the money back at the end of the agreement. So if the debtor does not pay the money on time, creditor will be able to ask the guaranteer or sell the mortgage and receive his money. But if he sells the mortgage and the price of that mortgage proceeds the amount he lent, he must give it back to the debtor. The same practice is being carried out by the Islamic banks and other financial institutes. In this article we will study the system of guarantees and its different kinds from sharia point of view to be able to choose sharia compliant system.