What is the ruling on obtaining a loan from an Islamic bank through a contract of buying and selling precious goods that is completed in minutes without seeing or possessing the item?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
The financial transaction known as organized or banking Tawarruq has been deemed impermissible by the majority of contemporary scholars. A resolution prohibiting it was issued by the International Islamic Fiqh Academy due to the fact that the bank carries out a standardized process in which a commodity is arranged to be sold at a deferred price to the mustawriq (the one seeking Tawarruq), on the condition that the bank undertakes, on his behalf, to sell it at a spot price. Therefore, it is not permissible to engage in this transaction.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
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- Ftawy
- Original fatwa ID
- 176514
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- Summary from Ftawy's records, reviewed by El Fatwa's sharia committee.
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