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  • The Financial Encyclopedia
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Islamic Finance

  Islamic Finance   |   Terms
  • 1064
  • April 21, 2020
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Al-Rahnu al-Mostaar

A pledged asset/ collateral (rahn) in which the posted asset, in association with a credit transaction, can be provided by a third party, rather than the debtor. However, this solely depends on the approval and permission (no objection) of the creditor.

Al-rahnu al-mosta’ar (الرهن المستعار) is Arabic for borrowed pledge.


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