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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?

1 min readAlso available in العربية

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.

Summarized from the full answer at Ftawy · reviewed Sep 2, 2026

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