The Ruling on the Condition of Settling a Debt with Another Debt
Machine translationRead the Arabic original
Question:
Peace be upon you, Your Eminence, father. The questioner says: I took a loan from the bank through tawarruq (a commodity sale used to obtain cash). When I wanted to take out another loan, they said they would give me the second one, but I must use it to pay off the full remaining balance of the first one, and I would take the excess from the second one. Is this permissible?
Answer:
No, this condition is not permissible. This amounts to transferring the debt to the one who is unable to pay, so this condition is not permissible. Yes.
Peace be upon you, Your Eminence, father. The questioner says: I took a loan from the bank through tawarruq (a commodity sale used to obtain cash). When I wanted to take out another loan, they said they would give me the second one, but I must use it to pay off the full remaining balance of the first one, and I would take the excess from the second one. Is this permissible?
Answer:
No, this condition is not permissible. This amounts to transferring the debt to the one who is unable to pay, so this condition is not permissible. Yes.
Source
قناة «العلامة الدكتور صالح الفوزان»، [782- 4717] حكم اشتراط قضاء الدين بدين آخر - الشيخ صالح الفوزان — youtube.com
The Arabic text is a machine transcription of the audio recording.