Trim the excess burlap or monk's cloth fabric used as the rug's base around the edge of the rug to two inches wide.
Measure the length and width of the rug, and add the two together. Multiply this amount by two. Add three inches to this total, and cut your binding material to this length.
Align one end of the binding to the right side of your rug, so it rests over the pile of the rug, with its right edge running along the edge where the rug hooking stops. Pin the length of the binding to the rug like this all the way around. Overlap the tails where they meet at your starting point.
Stitch around the entire perimeter of the rug over the binding’s right edge, with your sewing machine set on a straight stitch. The binding edge should be attached right against the last row of rug hooking loops.
Switch your machine to a zigzag stitch. Stitch around the edge fabric, working a quarter-inch out from the binding stitches. Stitch around the rug a second time, working a half-inch out from the binding.
Trim the excess fabric from the edge up to within an eighth of an inch of the second zigzag stitch line. Fold the corners of the excess fabric in a diagonal to the back of the rug. Press the folds with an iron. Fold the sides back along the stitch line that connects the binding, and iron them.
Roll the binding around to the back of the rug, and pin it in place all the way around. Hand stitch the binding to the back of the rug, taking backstitches every four to five inches, until the binding is secure all the way around.