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: FtawySummarized from the full answer at Ftawy · imported Sep 2, 2026
If the bank you deal with is an Islamic bank that observes Sharia 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.
Summarized from the full answer at Ftawy · imported
Read the full answer on Ftawyhttps://ftawy.com/en/questions/125015
- Source platform
- Ftawy
- Original fatwa ID
- 125015
- Imported
- Translation status
- Source text, unreviewed
- Read the full ruling
- Read the full answer on Ftawy