What is the Islamic legal ruling regarding personal loans offered by the Saudi American Bank (Tawarruq al-Khair)?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
"Tawarruq al-Khair" cannot be ruled upon without knowing its true nature. A loan that brings benefit is considered usury (riba). Tawarruq (purchasing a commodity to sell it and profit from its price) is permissible according to the preponderant opinion. It is not permissible to deal with interest-based (ribawi) banks, even if the transaction itself is শরعية (-compliant), due to the cooperation in sin and aggression involved therein.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/48182
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- Ftawy
- Original fatwa ID
- 48182
- 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