ANALYSIS OF THE RAHN AGREEMENT AS A SOLUTION TO COMMUNITY FINANCING

Abstract

The rahn contract, or sharia pawn, is a financing instrument in the Islamic economic system that aims to provide easy access to funds for the public without violating sharia principles. This contract uses valuable items as collateral for the financing provided, thereby providing a sense of security for financial institutions and justice for the public. This study aims to analyze the rahn contract as a community financing solution and examine its role and impact in improving economic welfare. The research method used is a qualitative method with a literature study approach through analysis of muamalah fiqh literature, scientific journals, DSN-MUI fatwas, and other Islamic legal sources. The results show that the rahn contract has a strategic role as a financing alternative that is fair, easily accessible, free of usury, and relevant to the needs of modern society. With optimal management, the rahn contract has the potential to become a sustainable financing instrument capable of supporting community economic stability.