Bayʿ al-ʿĪnah & Tawarruq: Controversial 'Tricks'
Avoiding Financial Pitfalls • Module 2 of 3
These are controversial structures used by some banks to replicate loans. In 'Īnah, a bank sells an item to a client on credit and immediately buys it back for a lower cash price, creating a disguised loan. Tawarruq is a more complex version involving a third party. Stricter scholars reject these as legal fictions (ḥiyal) that violate the spirit of the law.
Key Takeaway
These structures are often called "legal tricks" (ḥiyal) because they use valid contracts to achieve a prohibited outcome (a loan). This platform avoids them entirely.