Bukhari

Hadith Commentary:
Ibrahim al-Nakha’i rahimahullah deduced from this hadith that if it is permissible to pledge something as collateral for the payment of a price, then it is also permissible in the case of something that has a price.
By “something that has a price” is meant, in the context of a salam sale (bay‘ al-salam), the commodity which is to be delivered later.
The importance of this topic is that although armor is a defensive weapon, it too can be pledged as collateral when needed.
It should be noted that the Messenger of Allah sallallahu alayhi wa sallam purchased twenty sa‘ (a measure) of barley from a Jew named Abu Shuham for one dinar, with the payment to be made after a year, but he sallallahu alayhi wa sallam passed away before the term was completed.
After him, Abu Bakr radi Allahu anhu paid the price and retrieved the pledged armor, and handed it over to Ali radi Allahu anhu.
(Fath al-Bari: 5/176)

Hadith Commentary:
The purpose of this chapter is to show that grain can be purchased on credit at the time of need.
And if necessity arises, it is also permissible to pledge any of one’s belongings as collateral in connection with such a loan, and it is also established that such worldly transactions can be conducted with non-Muslims as well.
The Prophet Muhammad (sallallahu alayhi wa sallam) himself obtained grain on credit from a Jew.
And it was well known to him that all kinds of transactions took place among the Jews.
Even in such circumstances, he took grain on credit from them and, for their further reassurance, pledged his blessed coat of mail as collateral with that Jew.
The narrator mentioned in the chain, al-A’mash (rahimahullah), is Sulaiman ibn Mihran al-Kahili al-Asadi.
He was a freed slave of Banu Kahil.
Banu Kahil is a branch of Banu Asad Khuzaymah.
He was born in Rayy in 60 AH, and someone took him and sold him in Kufa, where an elder from Banu Kahil bought and freed him.
He is among the famous imams of hadith and Qur’an recitation; most of the narrations of the people of Kufa are based on him.
He passed away in 148 AH.
Rahimahullah.
Likewise, al-Aswad is also a well-known Tabi‘i, who is famous as Ibn Hilal al-Muharibi.
He narrates from ‘Amr ibn Ma‘adh and from ‘Abdullah ibn Mas‘ud (radi Allahu anhu).
And from him, al-Zuhri has narrated.
He passed away in 84 AH.
Rahimahullah, may Allah have vast mercy upon him.
Amin.

Hadith Commentary:
(1)
From this hadith, it is understood that in times of necessity, grain can be purchased on credit.
It is possible that none of the Muslims had surplus grain, or perhaps the transaction was made with the Jew because no Muslim, out of courtesy, would accept its price; therefore, the Prophet (sallallahu alayhi wa sallam) did not wish to trouble them.
In another narration, it is mentioned:
The Prophet (sallallahu alayhi wa sallam) had taken [the grain] from this Jew and had kept his armor as collateral (rahn) with him, but life did not permit him to redeem his pawned armor by paying its price.
Abu Bakr (radi Allahu anhu) paid the price and retrieved the armor.
(2)
From this, it is understood that this incident occurred in the last days of the Prophet’s (sallallahu alayhi wa sallam) life, whereas the author of Tadabbur-e-Hadith has considered it to be from the early period in Madinah.
Is this the extent of their knowledge? According to them, this narration is not reliable.
(Tadabbur-e-Hadith: 1/485)

Hadith Commentary:

This ruling is established from the Noble Qur’an: “When you contract a debt for a fixed term, write it down” (: al-Baqarah: 283) until the end.

Then it is stated: “...then let there be a pledge taken (as security)” (: al-Baqarah: 283), meaning that when you take a loan for a specified period, then keep something as collateral by way of guarantee.

Hadith Commentary:
(1)
With this chapter heading and hadith, Imam Bukhari rahimahullah has refuted those individuals who claim that collateral (rahn) is not permissible in a forward sale (bay‘ salam).
(2)
Allamah Isma‘ili has narrated an account in which a person said to Ibrahim al-Nakha‘i that Sa‘id ibn Jubayr says that taking collateral in salam is usury (riba).
Ibrahim al-Nakha‘i, in response, narrated the aforementioned hadith to refute this statement, meaning: if collateral can be taken for the receipt of payment, then why can it not be taken as security for the receipt of the purchased item?
There is no difference between the two.
(Fath al-Bari: 4/547)

Hadith Commentary:
So that coat of mail remained with the Jew as a guarantee; it is understood from this that in salam (forward sale) or in a loan, if another person stands as a guarantor for the one who has entered into salam or for the debtor, then this is permissible.

Hadith Commentary:
(1)
Imam Bukhari rahimahullah has established the issue of guarantee (kafalah) from the permissibility of keeping something as collateral (rahn), because the purpose of pledging something as collateral is also to provide a guarantee. Therefore, any transaction can be conducted on the basis of someone’s guarantee as well.

(2)
In fact, it is the habit of Imam Bukhari rahimahullah that sometimes he alludes to a hadith through the chapter heading. Accordingly, he himself has mentioned a narration in the Book of Collateral (Kitab al-Rahn) that when the mention of a guarantor (kafil) in collateral (rahn) and forward sale (bay‘ salam) was brought before Ibrahim al-Nakha‘i, he presented the aforementioned hadith of Aisha radi Allahu anha as evidence for its validity.
(Sahih al-Bukhari, al-Rahn, Hadith: 2509)
Thus, Ibrahim al-Nakha‘i established the permissibility of guarantee (kafalah) for delivering the purchased item at the appointed time in a forward sale (bay‘ salam) from this hadith.
This is also the intent of Imam Bukhari rahimahullah. Therefore, it is not correct to say that the aforementioned hadith does not indicate the point presented in the chapter heading.
Wallahu a‘lam.

Hadith Commentary:

It is understood from this that in times of necessity, one may also pledge his belongings as collateral (rahn).

However, nowadays the situation is reversed: moneylenders even take interest on pledged items such as jewelry, etc.

The result is that if the jewelry is not reclaimed promptly, then sooner or later it is entirely consumed by the interest.

Just as it is forbidden (haram) for Muslims to take interest (riba), it is equally forbidden to give interest; therefore, such a transaction involving collateral should never be undertaken.

Hadith Commentary:
(1)
There is a narration from Ibn Abbas (radi Allahu anhu) that the Messenger of Allah (sallallahu alayhi wa sallam) said:
“When I do not have any money, I will not engage in any kind of buying or selling.”
(Sunan Abi Dawud, Al-Buyu’, Hadith: 3344)
Imam Bukhari (rahimahullah), through the mentioned chapter heading and the presented ahadith, has indicated the weakness of this narration.

(2)
There are two scenarios regarding the absence of price:
➊ The money is completely unavailable, neither in the pocket nor at home.
Even in such a situation, necessities can be purchased, as is understood from another hadith.
➋ If money is temporarily unavailable, there is also no harm in engaging in buying and selling, as is evident from the first hadith. However, if someone purchases something but does not intend to pay the price—instead, there is corruption in his intention—then for such a person, buying and selling is not valid, as will be clarified in the upcoming chapter.

Hadith Commentary:
From this hadith, the permissibility of possessing a coat of mail (zirah) is established.
A coat of mail (zirah) is a shirt made of iron, which covers the entire body during battle, and thus the blow of a spear or lance would have no effect on it.
In ancient times, it was customary in almost the entire world to wear a coat of mail (zirah) on the battlefield.

Hadith Commentary:
The name of the Jew was Abu al-Shahm.
The thirty sa’ of barley that the Prophet (sallallahu alayhi wa sallam) borrowed from this Jew, and the coat of mail that was pledged as collateral, its name was Dhat al-Fudul.
Some have said that the Prophet (sallallahu alayhi wa sallam) redeemed this coat of mail before his passing.
In one narration, it is stated that it remained pledged until his passing.
(Wahidi)

Hadith Commentary:
(1)
The purpose of this heading is that it is permissible to engage in financial transactions with non-Muslims, provided that they are not at war (harbi). There are two possible scenarios for this:
➊ There is a peace treaty with them and commercial dealings are generally permitted.
➋ Those non-Muslims are under the authority of a Muslim government and have the status of dhimmi.
It is not permissible to engage in financial transactions with those non-Muslim governments with whom there is no peace treaty, or with those non-Muslims who are not under the authority of a Muslim government.

(2)
It is also evident from the aforementioned hadith that the Messenger of Allah (sallallahu alayhi wa sallam) was extremely humble.
He did not borrow from any companion, perhaps because they might not accept payment for the grain from him, or perhaps they did not have surplus grain at that time. Therefore, he borrowed grain from a Jew and left his armor as collateral with him.

Hadith Commentary:

Abu Bakr (radi Allahu anhu) paid off the debt of that Jew and thus redeemed your (the Prophet’s) armor. In these circumstances, if any person with even a little sense reflects, he will clearly understand that you were a true Prophet.
You were not a king like the kings of this world.
If you had been like the kings of this world, you would have left behind millions upon millions in wealth for your children and wives.

Hadith Commentary:
➊
The name of this Jew was Abu Shahm.
In a narration of Jami‘ at-Tirmidhi, it is mentioned that the Prophet (sallallahu alayhi wa sallam) had taken twenty sa‘ (a measure) of grain.
(Jami‘ at-Tirmidhi, Al-Buyu‘, Hadith: 1214)
It appears that the grain was somewhat less than thirty sa‘.
If the fraction is counted, then it is thirty sa‘, and if the fraction is not counted, then it is twenty sa‘.
➋
After the passing of the Messenger of Allah (sallallahu alayhi wa sallam), Abu Bakr (radi Allahu anhu) redeemed that coat of mail from the Jew and handed it over to Ali (radi Allahu anhu).
Hafiz Ibn Hajar (rahimahullah) writes that this hadith is meant to describe the very last circumstances of the Messenger of Allah (sallallahu alayhi wa sallam), and this hadith is in accordance with another narration from ‘Amr ibn al-Harith (radi Allahu anhu) that the Messenger of Allah (sallallahu alayhi wa sallam) did not leave behind any dirham or dinar at the time of his passing.
(Fath al-Bari: 8/190)

Hadith Commentary:
The Messenger of Allah (sallallahu alayhi wa sallam) himself purchased something on credit from a Jew.
In fact, he even kept his armor as collateral with him.
Therefore, this matter is not contrary to dignity; whether one is an imam or a king, no one holds a higher rank than the Prophet (sallallahu alayhi wa sallam).
To personally buy one’s goods from the market and to carry them oneself is the Sunnah of the Messenger of Allah (sallallahu alayhi wa sallam).
And whoever considers this act to be bad or contrary to honor is rejected and wretched.
Rather, it is better that, as much as possible, a person should carry out every task himself, for then his life will be a life of tranquility.
This is what is called the beautiful example (uswah hasanah).

Hadith Commentary:
(1)
From other narrations, it is understood that the responsibility of purchasing items needed by the Messenger of Allah (sallallahu alayhi wa sallam) was entrusted to Hazrat Bilal (radi Allahu anhu). However, for the purpose of teaching the ummah, at times the Prophet (sallallahu alayhi wa sallam) himself also engaged in purchasing.

(2)
The purpose of this heading is to clarify that personally engaging in buying and selling is not contrary to dignity.
In any case, as an act of humility and modesty, the Messenger of Allah (sallallahu alayhi wa sallam) himself would also carry out such tasks. For example, he personally bought grain on credit from a Jew and kept his armor as collateral with him.
Whether someone is an imam or a king, his status is not greater than that of a prophet.
To purchase one's own goods in advance (salam) and to carry them oneself is the Sunnah of the Messenger of Allah (sallallahu alayhi wa sallam); therefore, it is better that a person does his own work.
By doing so, his life will be much more peaceful.
(Fath al-Bari: 4/404)

The item that is kept with the rightful owner as a guarantee, with the condition that when I pay the price, I will get my item back, is called a pledge (rahn). There is no harm or objection in pledging something for a legitimate purpose; therefore, it is permissible according to the Shariah. Whether one is resident or traveling. The restriction of travel in the Noble Qur’an is incidental; however, it is impermissible to benefit from the pledged item, otherwise this would become usury (riba). Except in the case where expenses must be incurred on the pledged item, then after incurring the expenses, benefit may be taken—for example, if an animal is pledged, then after feeding it grass and fodder, one may ride it, and that is all. If more benefit is taken, then the amount should be deducted from the debt—for example, if land is pledged, then its rent must be deducted from the loan, otherwise this would become usury. It is better to pledge such an item on which there is no need to incur expenses, such as jewelry, etc., so that no benefit can be taken from it.