Qard Hasan (Benevolent Loan)
Interest-free loan extended for welfare or hardship relief.
Detailed Description
Qard Hasan (Benevolent Loan)
What is the main purpose of Qard Hasan?
The main purpose of Qard Hasan is to provide financial assistance to individuals for essential needs, such as medical expenses, education, or starting a small business.
How does Qard Hasan differ from conventional loans?
Qard Hasan is interest-free and emphasizes social welfare, while conventional loans impose interest rates and primarily serve profit-driven motives.
What are the eligibility criteria for obtaining a Qard Hasan loan?
Eligibility generally includes individuals demonstrating genuine financial need and presenting valid reasons for the loan, such as emergencies or educational purposes.
What are the repayment terms like for Qard Hasan loans?
Repayment terms are typically lenient, with borrowers expected to repay the principal amount, and lenders may adjust terms based on the borrower's financial circumstances.
What is the cultural significance of Qard Hasan in Muslim communities?
Qard Hasan embodies values of compassion and community support, reinforcing social fabric and encouraging acts of charity among individuals.