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What is the ruling on Al Rajhi Bank's "Deferred Financing" program, which allows obtaining additional financing with higher profits, where installments do not begin until after the first financing ends? And is it considered a form of "reverting to a debt" (qalb al-dayn)?

1 min readAlso available in العربية

We understand from the question that the company will grant the debtor a new loan, the installments of which will not be due until after the expiration of the first loan period. If this is the case, then there is no harm in it, and the increase in profit here is not considered an overturning of the debt; because the first debt remains as it is, and this is a new, deferred debt, and the increase in profit does not affect it, as an increase in price in exchange for deferment is permissible. As stated in the resolution of the Islamic Fiqh Academy of the Organization of Islamic Conference: "It is permissible to increase the deferred price over the cash price."

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

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