What is the ruling on purchasing debt, where the bank pays off the remaining loan amount at the current bank by providing a larger financing to the borrower so that the previous loan is paid off and an additional sum is obtained, with the borrower paying a larger amount to the new bank?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
If the bank you deal with is an Islamic bank that observes regulations in its transactions, and it conducts a Tawarruq transaction to enable you to pay off your debt and benefit from the remaining amount, there is no harm in that.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/125015
Where this answer came from
- Source platform
- Ftawy
- Original fatwa ID
- 125015
- 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