The Ruling on Bank Loans through Tawarruq
Machine translationRead the Arabic original
Question:
Go ahead, Khalid, from Abha. Muhammad from Makkah, go ahead, Muhammad. Peace be upon you. And upon you be peace. Regarding these loans from the bank, on the basis that they tell you to take the goods and sell them, and you appoint the bank as your agent to sell them, is that permissible or not?
Answer:
My brother, this is the issue of tawarruq (a commodity sale used to obtain cash). It is necessary that the bank owns the commodity you wish to buy from them as a debt. They must own it fully. Then you buy it from them and take possession of it by moving it from their location. You move it from their location and sell it to someone else, and you benefit from its price. Yes.
The presenter:
May Allah reward you,
Go ahead, Khalid, from Abha. Muhammad from Makkah, go ahead, Muhammad. Peace be upon you. And upon you be peace. Regarding these loans from the bank, on the basis that they tell you to take the goods and sell them, and you appoint the bank as your agent to sell them, is that permissible or not?
Answer:
My brother, this is the issue of tawarruq (a commodity sale used to obtain cash). It is necessary that the bank owns the commodity you wish to buy from them as a debt. They must own it fully. Then you buy it from them and take possession of it by moving it from their location. You move it from their location and sell it to someone else, and you benefit from its price. Yes.
The presenter:
May Allah reward you,
Source
قناة «مكة و المدينة»، 08 فتاوى على الهواء - 30 / 03 / 1433هـ _ الشيخ صالح الفوزان — youtube.com (37:57)
The Arabic text is a machine transcription of the audio recording.