What is tawarruq?

Terms and word definitions as they relate to Islam.
[initially the terms are being brought over from our old board
"http://bbs.troach.net/viewforum(8).htm"
as there is a lot of good and important information found there.]
We will also be adding new terms from time to time.

As with the old board if we have made a mistake defining or describing any of the terms please let us know.

Note: Anyone can read this forum, only registered users may post or reply to messages.
Post Reply
transferedposts
Posts: 215
Joined: Tue Feb 17, 2015 6:02 am
Location: N/A
Contact:
Contact transferedposts

What is tawarruq?

Post by transferedposts »

What is tawarruq?

Tawarruq is where the financial institution (or person), either directly or indirectly, will buy an asset and immediately sell it to a customer on a deferred payment basis.

The customer then sells the same asset to a third party for immediate delivery and payment, the end result being that the customer receives a cash amount and has a deferred payment obligation for the marked-up price to the financial institution.
Top
Post Reply

Return to “Islam Terms”