Chapter on Pledges (Rahn)

Introduction

Linguistically, the word rahn—pronounced with a fatḥa followed by a sukūn—denotes firmness and continuity; Arabs say, “māʾun rāhin,” meaning stagnant water.

In the Sacred Law it is defined as: securing a debt with a specific item of property from which the creditor may take payment—either directly from the item itself or from its sale proceeds—should recovery from the debtor’s liability become impossible.

Its permissibility is proven by the Qur’an, the Sunnah, scholarly consensus, and analogical reasoning. The Exalted says, “then let there be a pledge taken and delivered” (al-Baqarah 2:283). As for the Sunnah, the hadiths of this chapter and others establish it. The scholars unanimously agree on its permissibility during travel, and the majority likewise consider it permissible—and binding—while at home.

For a rahn to be valid and binding, six conditions must be fulfilled:

1. Offer and acceptance, conveyed by any wording that indicates them.
2. The mortgagor must have full legal capacity to transact, a point on which there is no dispute.
3. The amount (value) of the pledged property must be known.
4. Its genus must be known.
5. Its description must be known, for the contract concerns property and therefore requires knowledge of its particulars.
6. The pledger must own the item or have permission to pledge it.

Benefit:
A rahn is a form of security that enables the creditor to obtain his due when collection from personal liabilities proves impossible.