Qitzur Shulchan Arukh – 179:7
Someone who lends on a collateral must be careful not to use it, because that would be like taking interest. But if he is lending to someone poor on [a collateral] of a whip or an axe, which has a high rental and is only a small risk of loss, he can rent it out even without asking the borrower, deducting the rental fee from the amount of the debt — for this is certainly of benefit to the borrower. There are those who say that it can only be rented out specifically to others, but not to himself, so that they do not suspect him of using it for free, just in exchange for the loan [as that would be prohibited as interest].
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