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?
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.
Summarized from the full answer at Ftawy · imported
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- Original fatwa ID
- 19246
- Imported
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- Source text, unreviewed
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