Qardhul 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 ?
Another simple concept that can be advanced for microfinance purposes is Qardhul Hasan or simply means an interest free loan.
There are a number of shari'ah compliant microfinance schemes, notably those operated by Hodeibah microfinance program in Yemen, the UNDP Murabahah based microfinance initiatives at Jabal al-Hoss in Syria, Qardhul Hasan based microfinance scheme offered by Yayasan Tekun in Malaysia, various schemes offered by Bank Rakyat Indonesia, and Bank Islam Bangladesh.