Benefiting from a pledge: land taken against a loan, and rent

Question

Question: Zayd gave ‘Umar one thousand rupees and took ten bighas (a bigha being a local unit of land area) of his land from him on the condition that twenty rupees of land rent would be deducted from those very rupees. Is this transaction permissible or not? And if it is not permissible, what is the way to make it permissible?

Answer

Apparently these one thousand rupees are a loan (qard) and the ten bighas of land are a pledge; benefiting from a pledge is not right. If, together with this, it is agreed that the twenty rupees of land rent will be taken out of these same thousand rupees, then this has become a lease (ijara); and making two transactions in one contract (one a pledge, the other a lease)

Source: Fatawa Mahmudiyya

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