Chapter: Leasing out Land (Kira) for gold and silver

Allah's Messenger (ﷺ) forbade the renting of land. I said: Is it forbidden (even if it is paid) in gold (dinar) and silver (dirham)? Thereupon he said: If it is paid in gold and silver, there is no harm in it.

I asked Rafi' b. Khadij about the renting of land for gold and silver, whereupon he said: There is no harm in it for the people let out land situated near canals and at the ends of the streamlets or portion of fields. (But it so happened) that at times this was destroyed and that was saved. whereas (on other occasions) this portion was saved and the other was destroyed and thus no rent was payable to the people (who let out lands) but for this one (which was saved). It was due to this that he (the Holy Prophet) prohibited it. But if there is something definite and reliable (e. g. money). there is no harm in it.

We were the major agriculturists of the Ansar and so we let out land (saying): The produce of this (part of land) would be ours and (the produce) of that would be theirs. But it so happened that at times this (land) gave harvest, but the other one produced nothing. So he (the Holy Prophet) forbade this. But so far as the payment in silver (dirham, a coin) is concerned, he did not forbid.

This hadith has been narrated on the authority of Yahya b. Sa'id with the same chain of transmitters.