Rahn Law And Practice From An Islamic Perspective In The Modern Era

Abstract

This article discusses the concept of rahn as a debt guarantee instrument from the perspective of Islamic law and Indonesian national law. Rahn is a contract for the transfer of goods as collateral for debt that complies with Sharia principles, free from elements of usury (riba) and uncertainty (gharar). The discussion includes definitions, legal basis, conditions and pillars, types of rahn, implementation procedures, benefits, as well as common issues arising in practice. Rahn as a debt guarantee instrument from the perspective of Islamic law and Indonesian national law. The main aim of this writing is to provide a comprehensive and practical understanding of rahn as a fair and secure financing solution within the Islamic economic system. It is hoped that this article can serve as a reference that helps strengthen Sharia financial literacy and enhance public understanding of pawning practices that align with Islamic values. The method used in This article is a literature-based study involving a review and analysis of various relevant literatures, including classical Islamic fiqh sources, Indonesian laws, and contemporary references related to the practice of rahn. All data were analyzed descriptively and qualitatively to comprehensively illustrate the concept of rahn from normative, theoretical, and practical perspectives. The discussion results indicate that rahn can serve as an effective financing instrument if implemented in accordance with Sharia provisions and applicable positive law.