According to search-discovered classical Islamic scholarship, the concept of Ar-Rahn (collateral or pledge) is a Shariah-compliant mechanism for securing a debt, legitimized by the Quran in Surah Al-Baqarah, verse 283. Tafsir experts like Ibn Kathir and Al-Tabari explain that this verse, while mentioning travel as a context, establishes a general principle permissible in all situations where securing a debt is necessary. The verse specifies the condition of 'a security deposit taken into possession' (farihānum maqbūḍah), which jurists interpret as the creditor having custody of the asset. The practice is further solidified by the Sunnah, where the Prophet Muhammad (pbuh) pledged his armor for a debt. Ar-Rahn serves a crucial role in Islamic finance by protecting the creditor against default, thereby encouraging lending and economic activity, while ensuring the process is free from interest (Riba) and exploitation, ultimately reinforcing the foundational Islamic principles of justice and fulfillment of trusts.