Qard hassan: the interest-free loan, principle and good practice
AmanaFi team · Updated · 1 min read
Qard hassan, or "beautiful loan", is a loan of money returned identically, with no interest or condition of benefit for the lender. The Quran invites lending God a beautiful loan, and tradition stresses its merit.
The principle
The lender expects nothing more than the sum lent. The borrower returns it on the agreed date. Demanding a surplus, a service in return or a benefit linked to the loan tips it into riba.
Good practice
A few pointers to lend and borrow with peace of mind.
- Write down the amount, the date and the due date.
- Agree a schedule if repayment is in instalments.
- Lend only what you can afford not to get back immediately.
- Grant time to someone truly in difficulty.
When repayment is late
Talk about it calmly and early, propose a new schedule rather than let embarrassment set in. The Quran encourages patience with a debtor in difficulty, and even forgiving the debt as a still finer gesture.
Frequently asked
Can I ask for a gift in return for a qard hassan?
No: demanding a benefit linked to the loan turns it into riba. A spontaneous thank-you after repayment is something else, but it must not be agreed in advance.
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