Is the method used by banks to make loans permissible, by having the loan applicant sign an authorization for the bank to purchase goods and sell them to him, and then give him the money, considered permissible?
What was mentioned is organized tawarruq, which is a cover for a usurious loan. The Islamic Fiqh Academy has issued a fatwa declaring it forbidden and has warned against it.
Summarized from the full answer at Ftawy · reviewed Sep 2, 2026
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