Qardhul Hasan

(redirected from Qard al Hasan)

Qardhul Hasan

In Islamic finance, an interest-free loan. In qardhul hasam, the borrower only repays the principal amount. Because the Quran forbids paying or receiving interest, qardhul hasam is the only permissible loan in Islamic finance. However, this does not preclude a number of other investment vehicles that imitate the payment of interest. See also: Sukuk, Murabaha, Mudharaba.
References in periodicals archive ?
Of the 25 countries that had any CSR Disclosure, not all institutions disclosed the amount of Zakat, charity or Qard Al Hasan funds.
Shari'ah principles suggest that the Takaful operator should use the shareholders' fund to extend an interest-free loan, the 'Qard al Hasan' (benevolent loan) to the mutual operating account to eliminate the shortfall.
However, unless the Takaful operator has specifically indicated in advance that it will provide a Qard al Hasan in the event of an operating deficit, then such support remains an implicitly discretionary undertaking under the contractual terms of a Takaful agreement.
Islamic bank generally mobilise current account deposits using qard Al Hasan, Amanah or Wadiah contracts.
JIB has initiated a program of funding at favorable rates and Al Qard Al Hasan loans aimed at fulfilling its social responsibility.