What is the ruling on a loan taken from a bank based on the representative's assurance that it complies with Islamic Sharia as a sale of an unknown commodity, knowing that there is an urgent need for it and with an interest rate of 2.24%?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
The described transaction is organized tawarruq, which is practiced by some banks. It is a pretense to riba (usury) and is forbidden by a resolution of the Islamic Fiqh Academy. In this transaction, the bank sells a commodity at a deferred price to the mustawriq (the one seeking cash), then sells it on his behalf at a spot price and hands over the price to the mustawriq. The questioner should have verified the permissibility of the transaction before engaging in it. We hope that he is excused due to his ignorance and his imitation of those who issued a permitting it.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/111229
Where this answer came from
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- Ftawy
- Original fatwa ID
- 111229
- 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
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