Qard Hasan
قرض حسن
Pronunciation: KARD HAH-san
A benevolent, interest-free loan where only the principal is repaid — the only fully permissible loan in Islam.
Definition
A benevolent or interest-free loan. The borrower repays only the principal amount with no additional charges or markup. It is considered a charitable act (not a commercial transaction) and is the only type of loan fully permissible in Islam.
The lender cannot benefit financially from the arrangement. Some Islamic banks offer qard hasan for current (checking) accounts — the bank treats the deposit as a loan from the customer and may return the exact amount on demand, sometimes offering a voluntary gift (hibah) without any obligation.
Related Terms
Compare Related Products
See how Qard Hasan is used in real Shariah-compliant financial products available in the U.S.
Further Reading
Read more on WikipediaStay Updated
Get halal finance updates, new provider alerts, and expert insights
Free. No spam. Unsubscribe anytime.
Quick Answer
Qard Hasan (قرض حسن) — A benevolent, interest-free loan where only the principal is repaid — the only fully permissible loan in Islam. A benevolent or interest-free loan. The borrower repays only the principal amount with no additional charges or markup.
Key Takeaways
- A benevolent, interest-free loan where only the principal is repaid — the only fully permissible loan in Islam.
- Category: Financing Structures
- Related: Riba, Hibah, Wadiah
- Compare related Shariah-compliant products on HalalWallet
How to cite this page
Preferred format:
For time-sensitive claims (rates, fees, state availability), please verify directly with the provider's official documentation and note the retrieval date.
Sources and review process
This page is reviewed against HalalWallet editorial standards and source documentation.
Reviewed by: HalalWallet Editorial Team
Last reviewed: 2026-03-06
Co-Founder & CTO, HalalWallet
UA Labs Founder · 200+ Projects · Islamic Finance Specialist
Reviewed quarterly and updated for major content changes.