Rahn
Rahn is pledging a specific piece of property as security for a debt, so the creditor can recover it if repayment fails.
What it means for me: Pledging something does not transfer its ownership; it stays yours. It only secures the debt until you repay it, or until the pledge is used to cover what you owe. Most scholars hold the pledge is not complete until the item is actually handed over.
Example: A man borrows money and gives the lender his gold jewelry to hold until he repays. If he cannot repay, the lender may sell the jewelry and take back what is owed from the price.
Do not confuse with: *Kafalah* in its guarantee sense — a third person standing surety for the debt, rather than property securing it. A rahn ties the debt to a specific item; that kind of guarantee ties it to a person's own promise.
If scholars differ: Scholars differ on whether the person holding the pledge may use or benefit from it while it secures the debt. They also differ on what happens if the pledged item is damaged without anyone's negligence.
See the term in context
What is the ruling of Islamic law concerning "Ar-Rahn" (pledging/mortgaging) as practiced in Morocco, which involves the tenant paying a sum of money (an advance/loan) to the landlord in exchange for reducing the rent by half or by a third, with a loan agreement written between the two parties?
The described scenario, where one person (Al-Mukhtar) lends a sum of money to another (Ammar), and Ammar then rents his house to Al-Mukhtar at a lower-than-usual rent in exchange for the loan, is not permissible. This…
Why is collateral (rahn) necessary in Islam?
Pledging is when money is designated as collateral for a debt, to be collected from it if collection from the debtor becomes impossible. It is permissible according to the Qur'an, Sunnah, and scholarly consensus, as…
What is the ruling on zakat for gold mortgaged for personal use, and upon whom is the zakat obligatory: the mortgagor or the owner of the gold?
In Islamic law, a mortgage (rahn) is money designated as security for a debt, to be recovered from its value if the debt cannot be obtained from the debtor. If "mortgaged gold" is what is meant, then according to the…
Questions that use it
How did the Prophet, peace and blessings be upon him, extend each of "Bismi Allah Ar-Rahman Ar-Rahim," and how many vowel counts did he extend in "Allah" and "Ar-Rahman" when reciting the Basmala continuously?
Is it permissible to agree to purchase a house in installments over two years, provided that the seller stipulates that the house may not be sold until the installments are paid?
Are the hadiths mentioned concerning the virtues of the surahs of the Holy Quran, such as: "Ten prevent ten..." and the virtue of Surat Al-Kahf, Yasin, Ad-Dukhan, Ar-Rahman, Al-Waqi'ah, Al-Mulk, Al-Falaq and An-Nas, and As-Sajdah, authentic?