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What is the ruling on paying off a loan with Al-Rajhi Bank through another bank that only makes the payment and does not take an increase, but stipulates an increase on the loan to be paid off?

1 min readAlso available in العربية

There is no objection to obtaining financing for a project to repay Al-Rajhi Bank’s debt, either through permissible Tawarruq, such as buying a car or shares and selling them to obtain cash, or by obtaining an interest-free loan (Qard Hasan).

It must be noted that calling financing operations a "loan" is incorrect, and the organized Tawarruq practiced by some banks is forbidden and impermissible.

The nature of the financing must be clarified in order to rule on it.

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Source platform
Ftawy
Original fatwa ID
19246
Imported
Translation status
Source text, unreviewed
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