What is the ruling on lending to banks on the basis of Murabaha sale, knowing that the bank gives the borrower the value of the commodity in cash to sell it to another buyer, so that the borrower repays it later with an increase?
The real Murabaha sale, regulated by controls, is permissible. However, the problem lies in what is called "organized Tawarruq," where the client signs sales and purchase documents without there being actual buying and selling. If the Murabaha sale between the bank and the first buyer is genuine, and the client takes possession of the commodity, then authorizes the bank to sell it to another, there is no objection. As for the common form, which is organized Tawarruq, it is forbidden due to the absence of real buying and selling. The Islamic Fiqh Academy has warned against this type of Tawarruq and ruled that it is impermissible.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/85636
Where this answer came from
- Source platform
- Ftawy
- Original fatwa ID
- 85636
- 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