A man borrowed a sum of money from another man in exchange for pledging a piece of land, such that the pledgee benefits from the land’s produce until the principal is repaid without interest. What is the ruling?

The questioner : May Allah preserve you, the honorable Shaykh, says:The questioner : A man borrowed a sum of money from another man in exchange for pledging a piece of land, such that the pledgee benefits from the land’s produce until the borrower repays the amount to him on the principal without interest. What is the ruling regarding the land’s produce that the pledgee takes, and what is the correct procedure for this pledge? May Allah reward you with good.

The Shaykh : Did you understand the situation? A man lent money to a person, and the borrower gave him a piece of land whose produce belongs to the lender until he repays him. Is this permissible? The answer is no, it is not permissible. This is because the lender benefited from the loan, and every loan that brings a benefit is riba (usury or interest). The lender will now have his loan returned to him with an increase, which is what? The benefit from the land and the land’s produce. This is haram (forbidden) and not permissible. So, if the contract was concluded in this manner, we say to the lender: It is obligatory for you to deduct from the loan you gave this man the amount you benefited from the land. This is necessary.