Qardhul Hasan

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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.