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Islamic Finance

  Islamic Finance   |   Terms
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  • January 3, 2023
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Dayn Muwathaq

Arabic (دين موثق) for debt (dayn) that is backed by an asset (collateral or rahn) owned by the debtor (madeen) to ensure repayment of the debt. If not repaid as stipulated in the contract (aqd), the creditor can dispose of the asset to recover his debt.

Dayn muwathaq translates as secured debt.


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