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How is a commodity divided between two partners if it is shares or rice in a Tawarruq loan?

1 min readAlso available in العربية

The transaction can either be in both your names at the bank, where the bank sells you the commodity and records its price as a debt against both of you. The commodity would then be jointly owned between you. It is permissible for one of you to sell it on behalf of the other, then you both divide the price and each pays their share of the installments to the bank.

Alternatively, the transaction can be in one of your names at the bank, where the bank sells the commodity to that person and its price becomes a debt in installments against him. Once the sale between him and the bank is complete, he sells you half of the commodity for the same price (a 'Tawliyah' sale). The commodity then becomes your property, and it is permissible to authorize him to sell it on your behalf. When it is sold, you both divide the price, and the bank transfers half of the installments to you to pay, or requests you to pay them.

It is important that he does not give you half of the price for which he will sell the shares, on condition that you pay off half of the installments due to the bank, which are more than half of the price. This is because such an arrangement would constitute a usurious loan. This differs from buying half of the commodity from him, as that is a sale and not a loan.

Summarized from the full answer at Ftawy · reviewed Sep 2, 2026

Read the full answer on Ftawy