What is the ruling on my borrowing from an Islamic bank to construct a commercial building, where the bank purchases construction materials from a contracting company and transfers the amount directly to the company, then I receive the amount in cash from the company and repay the loan to the bank in monthly installments?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
Since the bank did not take possession of the goods and did not authorize the person to take possession of them, this is sufficient to prohibit the transaction, which is a circumvention of explicit usurious loans, whether through organized Tawarruq or otherwise. Bank financing is permissible only if the conditions for permissible Tawarruq are met.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/193047
Where this answer came from
- Source platform
- Ftawy
- Original fatwa ID
- 193047
- 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