The Conditions of Tawarruq

Question:
Please, please, O 'Abd Allah. I took a loan from al-Rajhi for a car. After a year, I took a loan for stocks. Now I am asking for an additional loan, also for stocks. I do not know if it is good or not good. And another bank, other than al-Rajhi, says they will give you wood, and the amount is larger, but I have not received any of it. I received the car, but I have not received the rest. Okay, thank you.

Answer:
My brother, this is not a loan; this is a sale. This is the issue of tawarruq (a commodity sale used to obtain cash). It is that you buy a commodity at a deferred price, then sell it to someone other than the creditor, other than its owner, and you benefit from its price, and then you pay the creditor his debt afterwards. The conditions for this are, first, that the creditor owns the commodity before the sale. Second, that you take possession of it; you do not sell it before you take possession of it. Third, that you sell it to someone other than the one from whom you borrowed. You must adhere to these matters. Yes.