2. CONTENT
DEFINITION
DEFINITION
EVIDENCE
EVIDENCES PILLARS OF AL-QARDH
CONDITIONS OF AL-QARDH
PILLARS
QARDH AL-HASSAN
QARDH EVIDENCE
AL-HASSAN
OBJECTIVES OF QARDH AL-HASSAN
OBJECTIVES
APPLICATION OF QARDH AL-HASSAN
APPLICATION
2
3. DEFINITION
Qardh: Loan/ Debt
DEFINITION
Literally:
EVIDENCES To cut something off; money given to the borrower
is called Qardh since portion that has been cut off
PILLARS from the property of the lender
Also known as al-Salaf or al-Dayn
QARDH
AL-HASSAN Technically:
Specific contract on transferring a specified
OBJECTIVES
property to another party on condition that a
similar property will be given back in return
APPLICATION
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4. NATURE OF AL-QARDH
The property can be any type of assets ranging from
DEFINITION
cash money, livestock or business
It is called qardh, as through this contract a certain
EVIDENCES
part of the lender's property is cut off and given to the
PILLARS
borrower.
Qardh refers to a contract through which a lender
QARDH gives a certain homogenous property to a borrower on
AL-HASSAN
the condition that the latter is responsible to return a
OBJECTIVES similar property immediately upon a demand or at a
specified time.
APPLICATION
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5. EVIDENCE
Quran
DEFINITION
EVIDENCES
PILLARS Hadith
Narrated by Anas ibn Malik: The prophet saw said:
QARDH
AL-HASSAN
I saw on the night of Isra’ something written on the gate
of the paradise. Donation(sadaqah) is rewarded 10
OBJECTIVES
folds, and qardh is rewarded 18 folds.
I asked Gibrail: Why is it giving Qardh is better than
donation? He replied: Because the receiver of the
APPLICATION
donation asked for it while he actually has something,
but the borrower will not ask for loan except when there
is a necessity
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6. EVIDENCE
Ijma:
DEFINITION
The scholar had formed an ijma’ that Qardh is
permissible in Islam
EVIDENCES
This contract is classified under the category of
PILLARS
contracts pertaining to the utilization of usufruct
(aqad al-manfa’ah)
QARDH
AL-HASSAN There is no actual transfer or exchange of property
involved.
OBJECTIVES
APPLICATION
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7. PILLARS OF QARDH
Muqridh
DEFINITION
Creditor or Lender
EVIDENCES Muqtaridh
Debtor or Borrower
PILLARS Maal
Property
QARDH
AL-HASSAN Sighah
OBJECTIVES
Ijab: Offer
Qabul: Acceptance
APPLICATION
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8. FLOW OF AL-QARDH
DEFINITION
Muqridh (Creditor)
EVIDENCES
Qabul (Acceptance)
PILLARS
Ijab (Offer)
QARDH Maal
AL-HASSAN
(Property/ Asset)
OBJECTIVES
APPLICATION
Muqtaridh (Debtor)
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9. CONDITIONS OF QARDH
Ijab (Offer) and Qabul (Acceptance)
DEFINITION
Must be in a very clear and concise type of sighah (offer
& acceptance)
EVIDENCES
Ahliah
PILLARS Eligibility of the contracting parties (sane, adults &
qualified)
QARDH
AL-HASSAN
Quantity and Quality
Must be specified in quantity, weight & quality
OBJECTIVES
Items that are not mixed with other material
APPLICATION
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10. QARDH AL-HASAN
Literally
DEFINITION
Qardh means cutting off.
EVIDENCES
Hasan means benevolence, beautiful, and kindness.
The term al-qard al-hasan literally means beneficial
PILLARS loan, benevolent loan, gratuitous loan, and beautiful
loan.
QARDH
AL-HASSAN A debt that is free from any type of predetermined
condition or promise to repay back more than the
OBJECTIVES
original amount stated in the contract, but a special
token is sincerely given by the debtor to the lender
APPLICATION
during debt settlement not because any written
agreement or any predetermined provision or term
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11. QARDH AL-HASAN
Under Qardh al-Hassan, borrowers or debtor con
DEFINITION
voluntarily give some extra amount more than the
loan principle provided that:
EVIDENCES
1. Not stated in the contract
PILLARS 2. Not have agreed upon
3. Not predetermined in any manner by both parties
QARDH
AL-HASSAN
OBJECTIVES
APPLICATION
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12. EVIDENCE
Quran:
DEFINITION
EVIDENCES
PILLARS
The Quran verses explains Qardh al-Hassan
QARDH
AL-HASSAN
between Allah and the believers whereby it is
actually an offer from Allah for them to lend their
OBJECTIVES energy, time and property in Qardh al-Hassan
manner
APPLICATION They will receive back all the things that they had
sacrificed for the sake of Allah plus all extra
rewards that will be given to them
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13. EVINDENCE
Hadith:
DEFINITION
Abu Rafi said: The prophet (s.a.w) borrowed a young
camel and then the camels from the zakat came to him.
EVIDENCES
He ordered me to repay the man his young camel.
I said, I can only find a good camel in its seventh year
PILLARS
among the camels
QARDH The prophet said, “Give it to him. The best of people are
AL-HASSAN those who discharge their debts in the best manner”
OBJECTIVES
APPLICATION
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14. OBJECTIVES OF QARDH AL-HASAN
To help the needy fellow people.
DEFINITION
To establish better relationship among poor and the
EVIDENCES
rich.
To mobilize wealth among people in the society.
PILLARS To facilitate the poor to create new jobs market and
QARDH
business ventures by using their merits, skills and
AL-HASSAN expertise.
OBJECTIVES
To establish a caring society.
To eradicate unemployment problem from the
APPLICATION society.
Great reward in the Hereafter for qardh al-hasan,
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15. CHARACTERISTICS OF QARDH AL-HASAN
It is flexible with respect to collateral.
DEFINITION
Documentary procedures are usually very simple
EVIDENCES Loans are usually small in size, approval
procedures rapid and disbursement quick
PILLARS There are no interest charges involved
QARDH The fund has easy access to capital contributors and
AL-HASSAN
borrowers because of its local base
OBJECTIVES The fund managers, who are drawn from capital
contributors, are fully accountable
APPLICATION
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16. MODERN APPLICATION
Personal financing
DEFINITION
Government Investment Certificate
EVIDENCES Hybrid Islamic Credit Card
PILLARS
QARDH
AL-HASSAN
OBJECTIVES
APPLICATION
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17. END OF CHAPTER
DEFINITION
EVIDENCES
PILLARS
QARDH
AL-HASSAN
OBJECTIVES
APPLICATION
17
