Is it permissible to take an Islamic loan from "Riyad Bank" – approved by the Sharia Board – for the purpose of marriage and building an annex to the house, knowing that the loan procedures involve selling goods to the bank and then reselling them to the owner of the shop to obtain the money?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
If the bank carries out financing with the approval of a reliable board, there is no objection to it. This transaction is called Tawarruq, and it is permissible according to the most authoritative opinion due to the absence of a text prohibiting it. However, if the bank buys a commodity for you and then sells it to you at a profit, it must take proper possession of the commodity. It is not permissible to sell the commodity back to the same place from which the bank bought it, in order to avoid the suspicion of usurious 'Inah. Instead, it must be sold to another place.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/133187
Where this answer came from
- Source platform
- Ftawy
- Original fatwa ID
- 133187
- 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