Rahn

Rahn is a pledge of an asset as security for a debt, covered by AAOIFI Shariah Standard No. 39 on mortgage and its contemporary applications. On cards it appears as the security deposit some issuers require, particularly on secured cards. AAOIFI Shariah Standard No. 3 clause 2/1/5 permits the creditor to apply for the sale of a mortgaged asset to liquidate the debt and to require a mandate to sell it without going to court, and clause 3/2/2 of Standard No. 2 requires a compulsory card deposit to be invested for the cardholder's benefit rather than sitting idle for the bank's.