Is the method of financing a project by giving the lender a check for a specified profit margin, and then the borrower repays the amount in installments via checks, permissible in Islamic law? If it is not permissible, is it valid to circumvent the ruling by having the lending institution issue an authorization to a third party to cash the check, who then sends the money to the original merchant in China based on invoices sent by the borrower?
Source: FtawySummarized from the full answer at Ftawy · imported Sep 2, 2026
The described scenario for Murabaha is impermissible because, in reality, it is an interest-based loan. Among the conditions for a Murabaha sale is that the bank or funding institution must first own the commodity before selling it to the requesting party. The mere act of giving a check to another person does not change the true nature of the transaction.
Summarized from the full answer at Ftawy · imported
Read the full answer on Ftawyhttps://ftawy.com/en/questions/99024
- Source platform
- Ftawy
- Original fatwa ID
- 99024
- Imported
- Translation status
- Source text, unreviewed
- Read the full ruling
- Read the full answer on Ftawy