Rahn Agreement

If the money is not mixed with other funds, it is not allowed for use as a rahn; and Salam ,,,, I need more information about ar rahnu… Please discuss the concept of rahn (pledge) from a fiqh` point of view; Hussain, L. and Ali, M.M(2017), “Shar`ah non-compliant assets as rahn (pledge) in Islamic banking products: a fiqh` perspective,” ISRA International Journal of Islamic Finance, Vol. doi.org/10.1108/IJIF-08-2017-0018 assalamualaikum pls give me more information about the ar rahnu application in Islamic finance. With respect to Shara`s non-compliant assets acquired by an inconclusive contract (fsid), the study found that the asset can be used as a rahn, according to the Anafa school, provided the contract has been terminated or the buyer has taken possession of the asset with the seller`s consent. The requirements of the Framework in Islam follow the conditions of the asset in a sales contract: it must be recognized as valuable by the Shara and be present, identifiable, deliverable and held by the pawnbroker. The reason for these requirements is that the function of a deposit obligation is to settle the obligation in the event of a debtor`s default. This is only possible if pawning is legally recognized in the purpose of the sales contract (Ibn Qud`mah, 1388H, p. 4/253). Anything admitted as the object of a sale is also accepted as collateral. On this basis, lawyers have developed the famous legal maxim that “what can be sold is also mortgaged” (al-Zarkash, 1405H, p.

3/139). Conversely, a non-compliant Shara asset is not qualified as a rahn object. The “Rahn Exposure Draft” published by Negara Malaysia Bank (BNM) specifies that the purpose of the Rahn (Marhén) contract will be recognized by Sharaa (BNM, 2017, p. 5). The Organization for the Accounting and Audit of Islamic Financial Institutions (AAOIFI) also requires commitments consistent with Shara`s compliance with its Shara Standard No. 39. It says: “Mortgage value should be property authorized by Shara. It must also be well specified (by presentation, designation or description) and be able to provide” (AAOIFI, 2015, p. 970). Assalamualaikum. Is ar rahnu effect on the price of gold? if the money has been mixed with other funds, it is permissible to accept it up to the limit of the amount of the party (authorized).

Comments are closed.