Ar Rahnu (Mortgage)
Alhamdulillah (all praises be to Allah), prayers and peace be upon The Prophet Muhammad, his family, and his devoted companions.
The contract of mortgage is a contract where a stuff being restrained, as a guarantee of a credit. This restrain is aimed to give security for the creditor over his credit. By that, the stuff or item to be restrained should be valuable, so that the creditor will be able to sell it, if the debtor could not settle his debt on the appointed period.
Mortgage is one proof that Islam have already possess a complete and perfect economical system, as this Shari’a always guarantee an even economy distribution to all parties involved in every transaction. The applier of credits can fulfill his needs, while the creditor deserve a guarantee of his money’s safety, beside the rewards from Allah upon his help to others.
Argumentations of The Legal Status of Mortgage
For all people to understand the ruling of mortgaging in Islam, I will mention below the argumentations on which this legal status is based.
Allah The Exalted declared that,
وَإِن كُنتُمْ عَلَى سَفَرٍ وَلَمْ تَجِدُواْ كَاتِبًا فَرِهَانٌ مَّقْبُوضَةٌ
“If ye are on a journey, and cannot find a scribe, a pledge with possession (may serve the purpose).” (Al Baqara/The Cow: 283)