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The question

Is it permissible or forbidden for banks to lend to an individual against his rights in his company, such that the lending takes place in the form of a commodity or shares that the bank sells on his behalf without the borrower seeing them, with a specific monthly amount deducted with interest?

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Source: FtawySummarized from the full answer at Ftawy · imported Sep 2, 20261 min readAlso available in العربية
The answer

The scenario mentioned in the question falls under the category of organized tawarruq practiced by some banks and companies, which is a deceptive maneuver to circumvent riba (usury) and is therefore prohibited. The Islamic Fiqh Academy has issued a ruling prohibiting this type of tawarruq, which involves selling a commodity to the mustawriq (the one seeking cash) for a deferred price, after which the bank undertakes to sell it on his behalf for an immediate cash price and delivers the cash to him.

Summarized from the full answer at Ftawy · imported

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Where this answer came from
Source platform
Ftawy
Original fatwa ID
97685
Imported
Translation status
Source text, unreviewed
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