What is the ruling on tawarruq?
Machine translationRead the Arabic original
The questioner:
Peace be upon you. Your Eminence, the father. The questioner asks: What is the ruling on tawarruq?
The Shaykh:
Tawarruq is permissible with its conditions. If the commodity is with the seller, the creditor, and the debtor buys it from him for a deferred or installment price, he does not take possession of it. He takes possession of it, receives it, and sells it to someone else. He sells it to someone else; there is no harm in that. First, the commodity must not be with the creditor as his property before the contract. He sells it to the one in need. The one in need takes full possession of it, secures it, and removes it from the creditor's place, and sells it in another place to someone else. With these two conditions, it is permissible according to the majority of scholars. Some scholars hold that it is not permissible because it is a stratagem to reach riba (usury or interest). However, the needs of people today call for this. Where do people go? There are no valid loans, no benevolent loans, except resorting to the issue of tawarruq. But it is necessary to apply its conditions. Yes.
The presenter:
You, Husam 'Ali.
The Shaykh:
And Allah the Exalted knows best.
Peace be upon you. Your Eminence, the father. The questioner asks: What is the ruling on tawarruq?
The Shaykh:
Tawarruq is permissible with its conditions. If the commodity is with the seller, the creditor, and the debtor buys it from him for a deferred or installment price, he does not take possession of it. He takes possession of it, receives it, and sells it to someone else. He sells it to someone else; there is no harm in that. First, the commodity must not be with the creditor as his property before the contract. He sells it to the one in need. The one in need takes full possession of it, secures it, and removes it from the creditor's place, and sells it in another place to someone else. With these two conditions, it is permissible according to the majority of scholars. Some scholars hold that it is not permissible because it is a stratagem to reach riba (usury or interest). However, the needs of people today call for this. Where do people go? There are no valid loans, no benevolent loans, except resorting to the issue of tawarruq. But it is necessary to apply its conditions. Yes.
The presenter:
You, Husam 'Ali.
The Shaykh:
And Allah the Exalted knows best.
Source
قناة «العلامة الدكتور صالح الفوزان»، [2616- 4717] ما حكم التورق؟ - الشيخ صالح الفوزان — youtube.com
The Arabic text is a machine transcription of the audio recording.