Also known as al-qard al-hasan, qardh hasan qard hasan, or qard. An Islamic finance term, qard al-hasan refers to an interest free loan. In a qard al-hasan transaction, the borrower repays the principal amount of the loan without interest, mark-up, or a share in the business for which the loan was used. This product is consistent with the Sharia prohibition against riba because the borrower is not compensating the lender for the money advanced.

For more information on Islamic finance in the US, see Practice Notes, Islamic Finance: US Law Overview and Islamic Finance Structures and Products.

For more information on Islamic finance in the UK, see Practice notes, Islamic finance: UK law overview and A guide to key resources: Islamic finance.