What is the ruling when the pledgee benefits from the pledge in exchange for compensation?

General Chapter

Al-Mughni

Book of Pledges (Collateral)

Book 13 · Issue 4 · Bab 1

Open in Qurani

Primary text

If the pledgee rents the pledged house from the pledgor for its market rate, without favoritism (muhabah), this is permissible for both pledges securing loans and other debts. This is because the benefit derived is from the lease contract, not directly from the loan itself.

Supporting text

If favoritism is shown in the rental rate, the ruling reverts to the situation of benefit without compensation: it is impermissible if the debt is a loan and permissible otherwise.