What is the Islamic legal ruling regarding personal loans offered by the Saudi American Bank (Tawarruq al-Khair)?
Source: FtawySummarized from the full answer at Ftawy · imported Sep 2, 2026
"Tawarruq al-Khair" cannot be ruled upon without knowing its true nature. A loan that brings benefit is considered usury (riba). Tawarruq (purchasing a commodity to sell it and profit from its price) is permissible according to the preponderant opinion. It is not permissible to deal with interest-based (ribawi) banks, even if the transaction itself is শরعية (-compliant), due to the cooperation in sin and aggression involved therein.
Summarized from the full answer at Ftawy · imported
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