Pledge Agreement (Rahn)
A printable «Pledge Agreement (Rahn)» form to fill in by hand: 7 fields, with fiqh notes and sources. Free download, no registration, in Russian, English and Arabic.
This form has not yet been checked by a scholar. It is a draft drawn from the sources, not an approved specimen: show it to someone knowledgeable before signing.
What the form contains
1. Date of the Agreement
- Date
2. Parties to the Agreement: Rahin (pledgor) and Murtahin (pledgee)
- Pledgor (rahin — the party providing the pledged asset)
- Pledgee (murtahin — the creditor holding the pledge)
3. Debt Secured by the Rahn
- Debt secured by the rahn (pledge): basis, amount, repayment date
4. Pledged Asset (Marhun)
- Pledged asset (marhun): description, identification, valuation
5. Delivery of Possession (Qabd) of the Pledged Asset
- Has the asset been delivered into the possession of the murtahin (yes/no), and date
6. Safekeeping and Maintenance Expenses of the Pledged Asset
- Place of safekeeping and the party bearing the maintenance expenses
★ The murtahin (pledgee) does NOT use the pledged asset and does NOT appropriate its income — otherwise the loan (qard) becomes riba-bearing.
★ A condition that «upon default the asset passes into the ownership of the creditor» is IMPERMISSIBLE. Upon non-performance the asset is sold, the debt is settled from the proceeds, and any surplus is returned to the rahin (pledgor).
Insurance of the pledged asset must be in the form of takaful (Islamic cooperative insurance).
Mizan does not issue fatwas and does not replace a scholar. It is not legal advice and gives no contract force under the law of any country. Where the matter is serious, have the contract read by a specialist in Sharia and by a lawyer.