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The question

What is the ruling on withdrawing the full amount of financing granted to pay off existing debts with the same bank and benefiting from the remainder, knowing that the bank did not stipulate this?

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Source: FtawySummary from Ftawy's records · added here Sep 2, 20261 min readAlso available in العربية
The answer

If the bridge financing is based on organized tawarruq, where the bank sells an international commodity (metal) to the client, and then acts as the client's agent to sell it to obtain cash, this is Islamically forbidden. As for the permissible form of tawarruq, it is when the client buys the commodity from the bank or elsewhere for an installments-based price, then sells it himself to another party to obtain immediate cash. It is permissible to enter into additional permissible financing, provided it is independent of the first financing and there is no agreement to settle the first debt from the second financing.

Summary from Ftawy's records · added here

Reviewed by El Fatwa's sharia committee.

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Where this answer came from
Source platform
Ftawy
Original fatwa ID
16558
Added here
. This is when the answer was added to El Fatwa, not the fatwa's date.
Text
Summary from Ftawy's records, reviewed by El Fatwa's sharia committee.
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Read the full answer on Ftawy