Rahn

Pledge. Islamic law allows pledges / mortgages for debts like loans or deferred payments.

In Malaysia a financing arrangement is applied, whereby a loan is interest free, however, the pledge is about a valuable in custody of the bank, for which a fee is charged. This concept is so far not applied in the GCC.

External Links

• RHB Malaysia Contract for Loan with Rahnu Fee
• THE OPTIMIZING OF RAHN SERVICE FOR THE DEVELOPMENT OF ISLAMIC BANKING IN INDONESIA
• Pawnshops in Malaysia - student paper
• Fatwa on keeping the sale object as collateral and its permissibility in Shariah
• Collateral (Al-Rahn) as Practiced by Muslim Funds of North India
• A Rahn-Adl Collateral Security Structure for Project and Secured Financings