Comparing Tawarruq and Borrowing
Machine translationRead the Arabic original
The questioner:
He says: Honorable Shaykh, may Allah grant you success, I am in need of money. Which is better in reality: tawarruq, despite the disagreement regarding it, or borrowing and taking on debt? I do find someone willing to lend to me, but the debt is a heavy burden on the soul, and it involves the loss of one’s dignity.
The Shaykh:
I mean the methods; the methods are a heavy burden on the soul, for the one who seeks protection from others. There is no harm. The issue of tawarruq is permissible, if Allah wills, and there is no problem with it, except for what some people have prohibited. This would be the case if people were practicing generosity and extending good loans. But now, people are stingy with their money, and there is no one who extends a loan except rarely. So there is no harm in the issue of tawarruq, because it is buying and selling. You buy a commodity at a deferred price, then you sell it in the market to someone other than the creditor. You benefit from its current price, and when the term arrives, you pay the creditor. This is permissible; it is buying and selling, and it provides relief for people in financial distress. There is no doubt that this is a Shari'ah solution, and praise be to Allah.
The questioner:
Regarding the issue of the sound Shaykh.
The Shaykh:
If the one who is permitted to do so has the capacity to extend loans to people, to extend loans to people, may Allah reward you. If someone says that borrowing is not permissible and taking on debt is not permissible, while he has money and the capacity to dislike everything that people need from Allah. With money, he enters with money, he enters for the people. You do not do the issue of tawarruq, the issue of debt, or the issue of the goal. This is a hardship for the people, a restriction on the people. They will turn to abandoning it. If the door is closed on them, they will go to the clauses.
He says: Honorable Shaykh, may Allah grant you success, I am in need of money. Which is better in reality: tawarruq, despite the disagreement regarding it, or borrowing and taking on debt? I do find someone willing to lend to me, but the debt is a heavy burden on the soul, and it involves the loss of one’s dignity.
The Shaykh:
I mean the methods; the methods are a heavy burden on the soul, for the one who seeks protection from others. There is no harm. The issue of tawarruq is permissible, if Allah wills, and there is no problem with it, except for what some people have prohibited. This would be the case if people were practicing generosity and extending good loans. But now, people are stingy with their money, and there is no one who extends a loan except rarely. So there is no harm in the issue of tawarruq, because it is buying and selling. You buy a commodity at a deferred price, then you sell it in the market to someone other than the creditor. You benefit from its current price, and when the term arrives, you pay the creditor. This is permissible; it is buying and selling, and it provides relief for people in financial distress. There is no doubt that this is a Shari'ah solution, and praise be to Allah.
The questioner:
Regarding the issue of the sound Shaykh.
The Shaykh:
If the one who is permitted to do so has the capacity to extend loans to people, to extend loans to people, may Allah reward you. If someone says that borrowing is not permissible and taking on debt is not permissible, while he has money and the capacity to dislike everything that people need from Allah. With money, he enters with money, he enters for the people. You do not do the issue of tawarruq, the issue of debt, or the issue of the goal. This is a hardship for the people, a restriction on the people. They will turn to abandoning it. If the door is closed on them, they will go to the clauses.
Source
شرح قرة عيون الموحدين [28] — alfawzan.live (1:10:46)
The Arabic text is a machine transcription of the audio recording.