It is narrated from Sayyiduna Abdullah bin Abbas (may Allah be pleased with them both) that when the Messenger of Allah (peace and blessings be upon him) passed away, at that time his (peace and blessings be upon him) armor was with a Jew as collateral in exchange for thirty sa’ of barley. The Prophet (peace and blessings be upon him) had borrowed that barley from the Jew for the sustenance of his family.
Hadith Referenceالفتح الربانی / كتاب الرهن / 6059
Hadith Gradingمحدثین:صحیح
Hadith Takhrij«اسناده صحيح علي شرط البخاري۔ أخرجه الترمذي: 1214، والنسائي: 7/ 303، وابن ماجه: 2439، (انظر مسند أحمد ترقيم الرسالة: 2109 ترقیم بيت الأفكار الدولية: 2109»
Brief Explanation
Benefits: … The command of Allah, the Exalted, is: {وَاِنْکُنْْتُمْعَلٰیسَفَرٍوَلَمْتَجِدُوْاکَاتِبًافَرِھٰنٌمَّقْبُوْضَۃٌ} … “And if you are on a journey and do not find a scribe, then a pledge in hand (may be taken).” (Surah al-Baqarah: 283) In this noble verse, the mention is of pledging (rahn) during travel, but this does not mean that pledging is restricted to travel only. Here, travel is mentioned due to its prevalence, otherwise, pledging is also permissible in residence, as is evident from the aforementioned narration. From this hadith, the permissibility of such transactions with disbelievers is derived, regarding which there is no explicit prohibition.