Qard al hasan
Also known as al-qard al-hasan, qardh hasan or qard hasan. An Islamic finance term, qard al-hasan refers to an interest free loan that is typically made to the needy. 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 (www.practicallaw.com/9-500-7092) prohibition against riba (www.practicallaw.com/7-500-7093) because the borrower is not compensating the lender for the money advanced.
For more information on Islamic finance in the US, see Practice Notes:
For more information on Islamic finance in the UK, see Practice notes: