Nasai

(1) In the aforementioned hadith, the legitimacy of pawning an item in exchange for a loan for a specified period is mentioned, meaning it is permissible to give something as collateral. However, there is a condition that if there are no expenses incurred on the pawned item, then deriving benefit from it is not permissible; rather, its status will be that of a trust (amanah). When the debt is repaid, the item will be returned to its original owner in its original condition.

(2) It is permissible to engage in transactions and buying and selling with disbelievers (kuffar), provided they are not at war (harbi), on the condition that the actual item being transacted is not, according to Shariah, unlawful or prohibited, and there is no risk of any kind of mischief or corruption in the transaction—especially if, as a result of association, there is absolutely no harm to Islamic belief. Otherwise, any kind of transaction will be unlawful and impermissible. The same ruling applies to transactions with dhimmis.

(3) This blessed hadith also indicates that the wealth of dhimmis should remain in their possession and under their control, meaning that in an Islamic government, their right of ownership will be recognized.

(4) Lending and borrowing on credit and buying and selling on credit are permissible. There is no objection to this in Shariah, provided that religious requirements are not violated.

(5) Keeping weapons of war and preparing them on a high level is a completely correct practice. This is not contrary to reliance upon Allah (tawakkul ‘ala Allah), just as the preparation of the most modern missiles, atomic bombs, and other instruments of war is permissible.

(6) This blessed hadith indicates the humility (tawadu‘) and asceticism (zuhd) of the Messenger of Allah (sallallahu alayhi wa sallam), and the virtue of his pure wives (radi Allahu anhunna), that they adopted the path of greatness and dignity, and exercised patience and gratitude in all kinds of difficulties, and supported him (sallallahu alayhi wa sallam) excellently.

(7) After the death of the Messenger of Allah (sallallahu alayhi wa sallam), this coat of mail was retrieved from the Jew by Abu Bakr (radi Allahu anhu) by paying the price of the grain.

(8) The purpose of Anas (radi Allahu anhu) is to describe the simplicity and straitened circumstances of the Messenger of Allah (sallallahu alayhi wa sallam), but this hardship was self-imposed so that he could exercise patience and gratitude for his Lord. He and his family, despite having enough grain for a year, would give it away in charity to the poor and needy, and themselves would live in hardship and austerity. Allahumma salli ‘ala Muhammad wa Aali Muhammad.

(9) “Rancid fat” means it was old fat; its taste or smell had changed to some extent. It does not mean that it had become foul-smelling, because using such a thing is prohibited both in Shariah and medically. Sound nature abhors it. And the Messenger of Allah (sallallahu alayhi wa sallam) was indeed a most refined and pure personality.

(10) The purpose of the chapter is to remove a misunderstanding that perhaps being on a journey is a condition for the permissibility of pawning. However, from this hadith it is clear that travel is not a condition for pawning.

Hadith Commentary:
This incident was narrated by the Prophet sallallahu alayhi wa sallam about himself, in order to console other believers, not as a complaint or grievance.
The people of Allah (ahl Allah) rejoice in poverty and hunger in a way that they do not in wealth and affluence.
They say that poverty, hunger, pain, and illness are purely the will of the Beloved, that is, the Generous Lord, whereas in wealth and affluence, the will of the servant is also involved.
It is narrated from Sultan al-Mashaikh Nizamuddin Awliya, quddisa sirruh:
When he would enter his home and ask his mother if there was anything to eat, she would say, “Baba Nizamuddin, today we are guests of Allah,” and he would be extremely happy. But when she would say, “Yes, food is ready,” he would not feel any joy.
(Wahidi)
Hafiz (Ibn Hajar) says:
“In the hadith is the permissibility of transacting with disbelievers in matters where the prohibition of the very item being transacted is not established, and that the corruption of their beliefs and their mutual dealings is not taken into consideration. It is also derived from this the permissibility of transacting with one whose wealth is mostly unlawful. In it is the permissibility of selling, pawning, renting, and other such dealings of weapons with a disbeliever, as long as he is not a harbi (at war with Muslims). In it is the affirmation of the ownership of the dhimmis (non-Muslim citizens) over what is in their possession, and the permissibility of purchasing on deferred payment, and the making of armor and other war equipment, and that such preparations do not contradict reliance (tawakkul) upon Allah, and that possessing war equipment does not indicate its being withheld from use. This was stated by Ibn al-Munir. And that the staple food of that era was mostly barley, as stated by al-Dawudi. And that the statement of the pawnee (the one holding the pledge) regarding the value of the pledged item is accepted with his oath, as narrated by Ibn al-Tin.
And in this hadith is what the Prophet sallallahu alayhi wa sallam exemplified of humility, asceticism (zuhd) in the world, and contentment with little despite his ability to have more, and the generosity that led him to not store up provisions, to the extent that he needed to pawn his armor, and his patience in straitened circumstances, and his contentment with little, and the virtue of his wives for their patience with him in this, and other matters that have passed and are yet to come.
The scholars said: The wisdom in the Prophet sallallahu alayhi wa sallam turning away from transacting with the wealthy among the Companions to transacting with the Jews was either to demonstrate its permissibility, or because at that time the Companions did not have surplus food beyond their own needs, or he feared that they would not take any payment or compensation from him, and he did not wish to burden them. For it is not unlikely that among them were those who could have done so and more, but perhaps he did not inform them of his need, and only informed those who were not affluent among those who transmitted this, and Allah knows best.” (Fath al-Bari)
That is, from this hadith is established the permissibility of transacting with disbelievers in matters where the prohibition is not established; their beliefs and the corruption of their mutual dealings are not taken into account. And from this is also established the permissibility of transacting with those whose wealth is mostly unlawful. And from this is established the permissibility of pawning or selling weapons to a disbeliever, as long as he is not a harbi. And from this is established the affirmation of the ownership of the dhimmis over what is in their possession. And from this is established the permissibility of purchasing on deferred payment, and the making of armor and other war equipment, and that such preparations do not contradict reliance (tawakkul) upon Allah, and that storing up war equipment does not indicate its being withheld from use.
And it is also established that in that era, barley was the most common food.
And it is also established that regarding a pledged item, the statement of the pawnee is accepted with his oath. And from this hadith is also established the utmost asceticism and reliance (tawakkul) of the Prophet sallallahu alayhi wa sallam, even though all kinds of ease were available to him.
Despite this, he always preferred to have little of the world, and his generosity and lack of hoarding is also established, as a result of which he was compelled to pawn his armor. And his patience in straitened circumstances is also established, as well as his contentment with little, and the virtue of his wives who endured this with him.
And regarding why the Prophet sallallahu alayhi wa sallam transacted on credit with the Jews instead of the Companions, the scholars have mentioned a wisdom: that he did so to demonstrate its permissibility, or because at that time the Companions did not have surplus grain. Therefore, he was compelled to transact with the Jews. Or it may also be that he knew the Companions, instead of transacting on credit, would send the grain to his house free of charge, and would unnecessarily burden themselves, so he quietly managed with the Jews.

Hadith Commentary:
(1)
Although this hadith does not mention pledging (rahn) in a state of residence (hadr), Imam Bukhari rahimahullah has indicated towards some routes (turūq) of this hadith in which it is mentioned that the Messenger of Allah sallallahu alayhi wa sallam pledged something with a Jew in Madinah Tayyibah and took some grain from him for his family.
(Sahih al-Bukhari, al-Buyu', Hadith: 2069)
The name of the Jew was Abu Shuham and he was from Banu Zufar.
The Messenger of Allah sallallahu alayhi wa sallam pledged a coat of mail named Dhat al-Fudul and took thirty sa' of grain on credit.
In Musnad Imam Ahmad, it is mentioned that this coat of mail remained pledged until his passing.
(Musnad Ahmad: 238/3)
Abu Bakr radi Allahu anhu repaid the debt and retrieved the coat of mail.
(Fath al-Bari: 174/5)
(2)
The Messenger of Allah sallallahu alayhi wa sallam, instead of dealing with his Companions, conducted a credit transaction with a Jew.
The scholars have mentioned several reasons for this:
One is that, at that time, the noble Companions radi Allahu anhum did not have surplus grain, so he was compelled to conduct this transaction with a Jew.
The second is that he was well aware that the noble Companions would go to great lengths and would give him grain without compensation, and would unnecessarily put themselves in difficulty.
On this basis, he quietly conducted this transaction.
(Fath al-Bari: 175/5)
And Allah knows best.