What is qard hasan?
Qard hasan means a "good loan": money lent to someone in need with no interest or extra charge, only for Allah's reward. The borrower pays back the same amount they borrowed. It's a form of charity in Islam, and Muslim communities use it as a halal alternative to interest-based loans.
Where the term comes from
The phrase appears in the Quran, where Allah describes good spending as a loan to Him that He multiplies:
In that verse the "loan" is charity in general. Scholars also use the term for an actual interest-free loan between people, because it has the same spirit: you help someone without trying to profit from their need.
The basic rules
- No extra: the lender can't ask for more than the original amount, or any fixed benefit in return. That would be riba (interest). See Are student loans haram?
- Write it down: the Quran tells believers to record debts with a fixed term (Quran 2:282). A short written note protects both sides and the friendship.
- Pay it back: the borrower should repay on time and in full. Repaying with a little extra as an unasked thank-you gift is allowed by many scholars, as long as it wasn't a condition.
- Small admin fees: some Islamic organizations charge the actual cost of running a loan scheme. Scholars accept this only if it's a real cost, not hidden interest.
Being kind to someone who can't repay
If the borrower is struggling, Allah asks the lender to wait, and says it's even better to forgive the debt (Quran 2:280). The Prophet ﷺ said that whoever would like Allah to save him from the hardships of the Day of Resurrection should give more time to someone in difficulty or let the debt go (Sahih Muslim 1563). He also said that whoever relieves a believer of a hardship, Allah will relieve him of a hardship on the Day of Resurrection (Sahih Muslim 2699).
Qard hasan today
Many mosques and Islamic charities in the UK and USA run qard hasan funds for students, new arrivals and families facing a crisis. Some people use them to escape high-interest credit cards or payday loans. Lending a friend money this way is also a simple act of worship. If you're the lender and the money is still owed to you at zakat time, see Do I pay zakat on money someone owes me?
And don't worry that lending will leave you short. See Does giving charity make you poorer?
- Qard hasan is an interest-free loan given for Allah's sake.
- The borrower repays only the amount borrowed.
- Write the loan down and agree a time to repay.
- Giving extra time or forgiving the debt earns great reward.
People also ask
Is feeding stray animals charity in Islam?
Yes, feeding stray animals is charity in Islam. The Prophet said there is reward in kindness to every living being, like the thirsty dog.
Read the full answer →Can I give sadaqah on behalf of someone still alive?
Yes, you can give sadaqah on behalf of someone still alive, like a parent or child, and most scholars say the reward reaches them.
Read the full answer →Can I give zakat to orphans?
Yes, you can give zakat to orphans who are poor or needy, usually through their guardian or a charity. A wealthy orphan isn't eligible.
Read the full answer →Do I pay zakat on money that was lost or stolen?
No, you don't pay zakat on lost or stolen money while it's out of reach. If it comes back, scholars differ on paying for the missed years.
Read the full answer →Do I pay zakat on silver jewelry?
It depends: Hanafis require zakat on all silver jewelry over the nisab (595 g), while most scholars exempt silver jewelry worn normally.
Read the full answer →