Bayʿ and salaf in ar-rahn structures
| Contract | Explanation |
|---|---|
| Salaf | Loan from the bank to the customer when customer pledges his asset. Relationship between the bank and customer in salaf Bank: Lender Customer: Borrower |
| Bayʿ | In return for the bank’s service in safe keeping the pledged asset, an agreed fee is paid by the customer to the bank Relationship between the bank and customer in bayʿ Bank: Seller Customer: Buyer |
| Contract | Explanation |
|---|---|
| Loan from the bank to the customer when customer pledges his asset. | |
| In return for the bank’s service in safe keeping the pledged asset, an agreed fee is paid by the customer to the bank |