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Is it permissible for the merchant from whom you bought the goods to sell them on your behalf for a fee, in a Tawarruq loan, given that it is impermissible to sell to the same merchant from whom you bought?

1 min readAlso available in العربية

Tawarruq is impermissible when selling an item back to the original seller for a lower cash price, as this constitutes the forbidden 'inah transaction. However, there is no objection to authorizing the merchant to sell the purchased item to a third party, provided that the buyer takes possession of the item first, and then the authorization occurs thereafter.

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

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