Musannaf Ibn Abi Shaybah

Hazrat Mughira and Ibrahim (may Allah have mercy on them) say that the amount of the loan will be reduced in proportion to the part of the pledged property that is lost.

Hasan was asked about a person who had kept something as collateral in the house, and it was destroyed by fire? He replied: The part that was destroyed, the mortgagee has the right to it, and the part that remains, the pledger has the right to it.

Hazrat Qatadah says regarding the person who had mortgaged a house and it was destroyed by fire: He said, his right is in the vacant space among the houses.

Ibrahim (may Allah have mercy on him) said regarding the person who pawned a garment and it got torn: He said, the amount by which the value of the garment has decreased, the loan should be repaid less by that amount.