A loan creates a duty to repay. A credit sale can create a duty to pay an agreed outstanding price after goods are delivered. Each can support a pledge when a qualifying obligation exists.
Example 1: specified jewellery is pledged against a loan of 60,000 rupees.
Example 2: a machine is bought on credit for 60,000 and a specified item is pledged against the price.
In both cases the collateral secures an existing obligation; it does not itself extinguish the debtor's duty to pay.
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A loan versus a deferred sale price
Kitab al-Rahn: Pledge Formation, Possession, Liability and Eligible Collateral
A loan creates a duty to repay. A credit sale can create a duty to pay an agreed outstanding price after goods are delivered. Each can support a pledge when a qualifying obligation exists.
Example 1: specified jewellery is pledged against a loan of 60,000 rupees.
Example 2: a machine is bought on credit for 60,000 and a specified item is pledged against the price.
In both cases the collateral secures an existing obligation; it does not itself extinguish the debtor's duty to pay.