An official source in Sabaa Group for Pharmaceutical and Chemical Industries said that the company has spent about EGP 15m--representing 50%--of Qard Al-Hasan
(benevolent loan) provided by senior shareholders in the company throughout the past period with the aim of injecting them into financing production operations, such as purchasing pharmaceutical products from other companies.
Modes of financing allowed in the Law include qard al-hasan, mudharabah, civil partnership, legal partnership, hire--purchase, instalment transactions, muzara'ah, mosaqaat, direct investment, forward deals, joa'lah, and debt-purchase [Bank Markazi Jomhori: Islami Iran (1983)].
In mid-1984 the central bank announced twelve "Islamic" modes of finance comprising mark-up, mark-down, buy-back, leasing, hire-purchase, development charge, musharikah, equity, participation term certificates, rent-sharing, qard al-hasan, and service charge.
All banks are obligated to grant a part of their resources in qard al-hasan.
Qard al-hasan is granted to production and service cooperatives, to small farmers and craftsmen, and for personal needs such as matrimonial costs, procurement of dowry, medical costs, house repairs, and educational aid [Shirazi (1988)].
Guarantee of deposits plus disbursement of prizes to the holders of qard al-hasan deposits is approved by the religious authorities in Iran, while guarantee of deposits is considered unislamic in Pakistan.