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debt
In essence, Rahn is collateral which is any property or asset used to secure a debt. For example, a home purchase is typically secured by pledging the home as collateral. If the borrower defaults, the financier can seize the property. But why did the Shariah allow for Rahn? What are the Shariah wisdoms tied to...
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Question: How to Treat Surplus From Sale of a Collaterised asset In the Name of Allah, the Most Gracious, the Most Merciful. As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.  The Answer:  Any surplus proceeds in excess of an outstanding debt realised from the sale of a collaterised asset must be returned to the debtor. They are an Amanah...
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