What is the ruling on obtaining a subsidized housing loan from the company, which requires the repayment of a previous loan through "Tawarruq" for the transaction to be completed on time?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
It is permissible to engage in the legitimate Tawarruq (monetization) with the French Bank to purchase a car or pure (-compliant) shares and then sell them to obtain cash to pay off a debt to Al-Rajhi, provided it is not an organized Tawarruq. However, Tawarruq from a bank to pay off a debt to the same bank is considered a reversal of the debt and is forbidden.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/17771
Where this answer came from
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- Ftawy
- Original fatwa ID
- 17771
- 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