Is it permissible to refinance loans with the same bank or with another bank to alleviate financial burdens, and how can one atone for previous Tawarruq loans?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
The transactions mentioned, if they are an organized tawarruq (monetization) subject to -compliant regulations, or if you believe them to be permissible, then there is no objection to them. Otherwise, you incur sin.
It is not permissible to reschedule or sell debt unless the financing transaction is with an Islamic bank, such as tawarruq, in which case you settle the debt with the first bank and remain indebted to the second.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/135628
Where this answer came from
- Source platform
- Ftawy
- Original fatwa ID
- 135628
- 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.
- Read the full ruling
- Read the full answer on Ftawy