The Ruling on Taking a Loan from Banks and Tawarruq
Machine translationRead the Arabic original
The Shaykh:
May Allah give you life and bless you. Yes.
The questioner:
Your Eminence, Shaykh Salih (may Allah preserve you), may Allah bless you. We begin this episode with a question from the listener Adel from the British capital, London. He says, in a very long question, the summary of which is: Honorable Shaykh, my brother here in London wants to buy a house, and the amount he has is not sufficient. Is it permissible for him to take a loan from one of the Islamic banks we have in Britain? May Allah reward you with good.
The Shaykh:
In the name of Allah, the Most Gracious, the Most Merciful. Praise be to Allah, Lord of the worlds. May Allah send prayers and blessings upon our Prophet Muhammad, and upon his family and all his Companions. Taking a loan that is free from riba (usury or interest) is permissible, and it is a form of cooperation in good. As for a riba loan, it is not permissible, neither from banks nor from anyone else. Yes.
The questioner:
Your Eminence, Shaykh! Private banks provide financing through tawarruq or by any other method, and they call it a loan in such cases?
The Shaykh:
If it is tawarruq, there is no harm. Tawarruq is when one buys a commodity at a deferred price and sells it, and fulfills his need from its price. This permissible tawarruq is fine. Yes.
The presenter:
May Allah reward you.
May Allah give you life and bless you. Yes.
The questioner:
Your Eminence, Shaykh Salih (may Allah preserve you), may Allah bless you. We begin this episode with a question from the listener Adel from the British capital, London. He says, in a very long question, the summary of which is: Honorable Shaykh, my brother here in London wants to buy a house, and the amount he has is not sufficient. Is it permissible for him to take a loan from one of the Islamic banks we have in Britain? May Allah reward you with good.
The Shaykh:
In the name of Allah, the Most Gracious, the Most Merciful. Praise be to Allah, Lord of the worlds. May Allah send prayers and blessings upon our Prophet Muhammad, and upon his family and all his Companions. Taking a loan that is free from riba (usury or interest) is permissible, and it is a form of cooperation in good. As for a riba loan, it is not permissible, neither from banks nor from anyone else. Yes.
The questioner:
Your Eminence, Shaykh! Private banks provide financing through tawarruq or by any other method, and they call it a loan in such cases?
The Shaykh:
If it is tawarruq, there is no harm. Tawarruq is when one buys a commodity at a deferred price and sells it, and fulfills his need from its price. This permissible tawarruq is fine. Yes.
The presenter:
May Allah reward you.
Source
قناة «إذاعة القرآن الكريم»، نور على الدرب مع معالي الشيخ صالح الفوزان ح7498 — youtube.com (1:04)
The Arabic text is a machine transcription of the audio recording.