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The question

What is the ruling on agreeing with a merchant to create a fictitious invoice in order to obtain a cash amount from an institution, then repaying it in installments?

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Source: FtawySummary from Ftawy's records · added here Sep 2, 20261 min readAlso available in العربية
The answer

If the installments exceed two thousand dinars, this is a forbidden usurious transaction. However, if the installments do not exceed two thousand dinars, there is no usury in it; rather, it is a good loan. The problem remains with the deception of the institution through fictitious purchases to obtain money. The way out is through tawarruq, where the borrower buys a real commodity and then sells it for an immediate price to someone other than the one from whom he bought it. This is disliked, but not forbidden, according to the majority of jurists, and the dislike is removed with necessity.

Summary from Ftawy's records · added here

Reviewed by El Fatwa's sharia committee.

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Ftawy
Original fatwa ID
187604
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.
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Read the full answer on Ftawy