What is the ruling on taking a loan from a bank that grants the client ownership of goods which he does not see, then the client authorizes the bank to sell them, and the client obtains the money and repays it in installments?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
The mentioned form of Tawarruq is forbidden (organized Tawarruq). The permissible form is for you to buy a commodity owned by the bank, then sell it yourself without appointing the bank as your agent for the sale. If disposing of the commodity is difficult, one can buy a car in installments and sell it to another party for cash. This is the permissible Tawarruq.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/18706
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- Ftawy
- Original fatwa ID
- 18706
- 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