Is it permissible to take a loan from a bank that buys goods for the client and then sells them to him for a profit margin, on condition that the client authorizes the bank to sell the commodity?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
A distinction must be made between a loan and Tawarruq (monetization). A loan that is repaid with a stipulated increase is explicit Riba (usury) and one of the gravest major sins. As for Tawarruq, it is a permissible transaction according to the majority of scholars. If the bank sells a commodity at a deferred price and then authorizes you to sell it without compelling this authorization, then this is permissible Tawarruq.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/179370
Where this answer came from
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- Ftawy
- Original fatwa ID
- 179370
- 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