Islamic Finance
Ba’i al-Fodhouli
May 12, 2023
Portfolios
Portfolio Insurance
May 13, 2023

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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