"If you loan to Allah, a beautiful loan, He will double it to your (Credit)" (64:17)
"And give regular charity: And loan to Allah, a beautiful loan"(73:20)
Qard Hasan is for the benefit of the individual and the society at large. Islamic banks give loans to deserving persons for their genuine consumption requirements such as marriage, education, health care etc. Loans are also given for setting up small business enterprises. In these cases, only the principal amount is payable to the bank by the end of the agreed period, provided the borrower is in a position to repay the loan. Islam encourages Muslims to give Qard Hasan and has termed these loans as loan to Allah, which will be rewarded by him.
These types of loans, however, as a matter of policy, do not constitute a significant source of financing by Islamic banks. However, in any country an Islamic system of zakat is established and the Islamic state treasury starts functioning, the requirements of Qard Hasan would primarily be met by the treasury.
"And give regular charity: And loan to Allah, a beautiful loan"(73:20)
Qard Hasan is for the benefit of the individual and the society at large. Islamic banks give loans to deserving persons for their genuine consumption requirements such as marriage, education, health care etc. Loans are also given for setting up small business enterprises. In these cases, only the principal amount is payable to the bank by the end of the agreed period, provided the borrower is in a position to repay the loan. Islam encourages Muslims to give Qard Hasan and has termed these loans as loan to Allah, which will be rewarded by him.
These types of loans, however, as a matter of policy, do not constitute a significant source of financing by Islamic banks. However, in any country an Islamic system of zakat is established and the Islamic state treasury starts functioning, the requirements of Qard Hasan would primarily be met by the treasury.