Islamic Finance

Ba’i al-Fodhouli

May 12, 2023
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Portfolio Insurance

May 13, 2023

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A pledge (rahn) in which the posted asset, in association with a credit transaction, can be provided by a third party, rather than the debtor. However, this solely depends on the approval and permission (no objection) of the creditor.

The borrowed pledge (رهن مستعار) is transliterated into Arabic as al-rahnu al-mosta’ar.

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