What is the ruling on buying a car in installments from Islamic banks with the intention of selling it to obtain cash?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
This type of sale is called "Tawarruq" (monetization sale), and its purpose is to obtain cash, not to benefit from the commodity. Scholars have differed regarding its permissibility, and the preponderant opinion is that it is permissible due to the absence of a text prohibiting it. It is also incorrect to compare it to the "Inah" (buy-back) transaction. It is stated in "Al-Rawdh al-Murbi" and "Al-Insaf" that the issue of Tawarruq is permissible, and this is the (school of thought), and the companions (of the madhhab) are upon it.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
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- Ftawy
- Original fatwa ID
- 31451
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- Summary from Ftawy's records, reviewed by El Fatwa's sharia committee.
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