Chapter 05- Payment in Advance (or Salam), Loan and Rahn (putting up Collateral)

272. Buying in advance, refers to the sale of described goods or items to be delivered by the seller to the buyer at a certain time.
273. The word "Rahn" in Islamic Shari'ah means "items of possessions offered as security for a debt so that the debt will be taken from these possessions in case the debtor failed to pay back the due money.




876. Ibn 'Abbas narrated, 'When the Messenger of AIlah came to Madinah they were paying one and two years in advance for fruit, so he said, "Whoever pays money in advance for dates or fruit (to be delivered later) should pay for it with a known specified weight and measure (of dates or fruit to be delivered}." Agreed upon.






877. 'Abdul Rahman bin Abza and 'Abdullah bin Abi Aufa narrated, 'We used to get war booty while we were with Allah's Messenger and when the Nabat (274) of Sham came to us (to make deal) we used to pay them in advance for wheat, barley, and raisins (or oil in another version) to be delivered within a fixed period of time.' They were asked (by other companions), 'Did the Nabat own standing crops or not (at the time of the deal)?' They replied, 'We never asked them about that.' Related by Al-Bukhari.

274. Arabs who mixed with the Romans so that their lineage became mixed (not pure Arabs anymore) and their Arab tongue was spoiled.






878. Abu Hurairah narrated; 'Whoever takes people's money (as a loan) with the intention of repaying it, Allahh will repay it on his behalf, and whoever takes it in order to squander it, (275) then Allah will punish him.' (276) Related by Al-Bukhari.

275. Which means that he did not take the money out of need but he took it just to spend it, having no intention to pay it back.
276. Allah will punish him for his evil intentions in this world and in the Hereafter.






879. 'A'ishah narrated, 'I said: '0 Messenger of Allah so and so has been brought material from Syria, will you send him someone to buy two garments on credit until it is easy for you to repay? So, the Messenger of Allah sent someone to him but he refused.' Related AI-Hakim and Al-Baihaqi with a trustworthy chain of narrators.





880. Abu Hurairah narrated that the Messenger of Allah said,"A mortgaged animal may be ridden by the mortgagee, in return for its expenses and one can drink the milk of a milcb-animal in return for its expenses, if it is mortgaged. He, who rides the animal or drinks its milk has to pay the expenses." Related by Al-Bukhari.






881. Abu Hurairah narrated that the Messenger of Allah said, "The mortgaged item does not become the property of the mortgagee (277) -it remains the property of the owner who mortgaged it- he (i.e, the mortgagor) is entitled to its benefits (or increase in value) and he is liable for its expenses (or loss). Related by Ad-Daraqutni and Al·Hakim with a trustworthy chain of narrators.

277. In Jahiliyah -before Islam- Arabs were in the habit that the mortgagee would claim the ownership of the mortgaged item if the mortgagor failed to pay the due money, so the Prophet prohibited this practice.






882. Abu Rafi' narrated, 'The Messenger of Allah borrowed a young camel (less than six years) from a man, and when the camels of Zaktih were brought to him, he ordered Rafi to return the young camel to its owner. Abu Rafi' returned to the Prophet and said, 'I could only find an excellent camel above the age of six.' The Messenger of Allah said to him, "Give it to him, for the best men are those who are best in paying off their debts." Related by Muslim.






883. 'Ali narrated that the Messenger of Allah said, "Every loan which leads to an extra interest (when repaid), is considered Riba' (Usury)." Related by Al-Harith bin Abi Usamah, but there are omissions in its chain of narrators.






884. Al-Baihaqi related a similar weak narration on the authority of Fadalah bin 'Ubaid.





885. Al-Baihaqi also narrated a similar narration on the authority of 'Abdullah bin Salam, but it was not traced back to the Prophet