Can the borrower lease the borrowed item to a third party?
General Chapter
Al-Mughni
Book of Loan for Use
Primary text
The borrower is prohibited from leasing the borrowed item because they have not acquired ownership of the usufruct (benefit), and therefore cannot transfer ownership of it. There is no known disagreement on the principle that the borrower does not own the item itself. The consensus is that the borrower must use the item only in the manner explicitly permitted to them.
Supporting text
One opinion among Shafi'is, and the view of Abu Hanifa, permits the borrower to lend the item to another. This is because the borrower possesses the benefit according to the terms of their original possession, thus allowing them to transfer that possession, similar to how a lessee may sublease. The Hanafi scholars state that if someone borrows a garment specifically for their own wearing and lends it to another who wears it, the original borrower is liable (a guarantor). If the original loan did not specify who would wear it, there is no liability on the original borrower. Malik stated there is no liability if only the person for whom the item was originally intended to be used actually uses it.