Practical Law Glossary Item 3-503-0057 (Approx. 3 pages)
Glossary
Qard al-hasan
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.