Benefiting from the item pledged as collateral by the pledgee
If the collateral is something that does not require any maintenance or expense, such as goods, land, house, etc., and it was not pledged in exchange for the loan taken (but rather pledged in exchange for some other matter), then in such a case, it is not permissible for the pledgee to cultivate it or rent it out and benefit from it without the permission of the pledger, because it is his property. Therefore, the growth or increase in it is also the right of the pledger. If the pledger permits the pledgee to benefit from this land and this loan is not the one taken from him as a loan, then it is permissible for the pledgee to benefit from it until the period of delay in repayment is exceeded, even if it is without any compensation. However, if he is benefiting from it beyond the period of delay, then it is not permissible for the pledgee to benefit from it.
If the land pledged as collateral is in exchange for the loan taken as a loan, then it is absolutely not permissible for the pledgee to benefit from it because this is a loan that brings benefit along with it, and every loan that brings benefit is, according to the consensus and agreement of the scholars, usury (riba).
Reference: اللجنة الدائمة: 20244
