PAWNING IN ISLAM (AL-RAHN)

DEFINITION
Pawning in English dictionary bring the meaning of
something given as security for a loan. 1 Meanwhile in Islam,
pawning is allowable and the term that usable in the pawn
activity is al-Rahn. Literally, al-Rahn is fixed, permanent and
continuity; or detained, confined, prison and hostage. 2 Thus, alRahn translated in English as pawning, pledging or mortgage. 3
Technically, al-Rahn is to make a property a security in respect of
a right of claim, the payment in full of which from that property is
permitted. In other words, possession offered as security for a
debt so that the debt will be taken from them in case the debtor
fails to pay back the due money. 4 As al-Rahn is defined, it had
been classified as a contract under the category of security or
contracts pertaining to authentication. 5
The purpose of Rahn is to convince the creditor that the debt
will not simply disappear in case of default payment on part of the
debtor. In case of non-payment, the pledged property will be sold
or auctioned and the proceeds will be taken by the creditor to
compensate for the losses as a result of the bad debt. 6 However,
the creditor is only entitled to the total amount owed to him by
1 http://www.thefreedictionary.com/pawning retrieved on 22nd April 2013
2 Heizal Hezry Omar, Principles of Fiqh Muamalat: Faculty of Business Management
UiTM, Ch. 6, Pg 1
3 ibid
4 ibid
5 ibid
6 Ibid, Pg 2

the debtor and the balance will be returned back to the owner of
the pledged property (the debtor).7

EVIDENCE
Al-Rahn had been mentioned in al-Quran to prove that it definitely
practical in Islam. Allah The Almighty said: ((And if you are on a
journey and cannot find a scribe, pledges (may be taken)
in hand: but if you trust one another, then let him be
conscious of God his Sustainer))8.
Even though the above verse highlighted the legitimacy of Rahn
for travelers during their journey, majority of the jurists including
Syafie, Malik, Abu Hanifah and Ahmad had actually concluded
that the ruling is also applicable and relevant to those who are not
traveling and are residing or staying in a certain location. Only
Mujahid and Daud suggested that Rahn is only permissible during
the journey.9
Under the normal circumstances during travelling, voyagers
hardly find writer to document their debt transaction throughout
the journey. Hence the verse draws an attention towards the
voyagers as guidance. Nevertheless, in occasion that the
voyagers could find the writer, they still available to pledge their
property. The verse actually intents to guide the people on how to
secure and authenticate their debt in a simple way in case they
cannot find any writer at all.10
7 ibid
8 Al-Baqarah: 283
9 Heizal Hezry Omar, Principles of Fiqh Muamalat, Pg 2
10 ibid

While evidences from hadith; first is a Hadith narrated by Aishah

Radhiyallahu anha to the effect that: The prophet Sallallahu
alaihi wasallam had bought some food from a Jew, and he
Sallallahu alaihi wasallam pledged to him his steel
armour. Second is a hadith narrated by Anas Radhiyallahu
anhu to the effect that: The Prophet Sallallahu alaihi
wasallam had pledged his steel armour to a Jew in
Madinah, and in return, he Sallallahu alaihi wasallam took
from him some wheat for his family.
A consensus (ijma) among the Muslim jurists had
unanimously agreed on the legitimacy of the Rahn contract
especially because it had its origin in evidences found both in alQuran and al-Hadith.11

PILLARS OF AL-RAHN
There must be 5 pillars in al-Rahn that actualize the contract.
First pillar is al-Rahin (The Pledgor), a person who gives a Rahn or
in other words is the debtor. Second is al-Murtahin (The Pledgee),
a person who takes a Rahn namely a creditor. Thirdly is alMarhoun (The Pledged Asset), the property to be pledged.
Meanwhile the forth pillar is al-Marhoun Bih which is the debt. The
fifth pillar is sighah that consist of Ijab that means offer and Qabul
which is acceptance.12

11 ibid
12 Heizal Hezry Omar, Principles of Fiqh Muamalat, Pg 3