Analysing the moral aspect of qard: a shariah perspective

Abstract

Purpose – This paper aims to explore the moral aspect of qard (loan) from shariah perspective, and attempts to examine whether each interest-free qard is qualified for the Quranic term qard hasan (loan par excellence)? Also, the study attempts to establish the key constituents of qard hasan in the light of the primary sources of shariah, and seeks to define the legal status of the interest-free qard which fails to qualify for the “term” qard hasan. Design/methodology/approach – This study uses both the primary and secondary sources of shariah to examine the desired character of qard hasan. It employs pure qualitative paradigm to analyse and interpret the data. Findings – This study finds that in between the qard hasan and qard ribawi, there exists a third category of qard too, which neither qualifies for the former nor does fit under the definition of later. Originality/value – The findings presented in this paper illuminate the blurred line of contemporary understanding of qard hasan. The study adds original value to the corpus of contemporary literature on qard; as it collects and enumerates the ten vital conditions of qard hasan, without which, even an interest-free qard holds no virtuous sanctity in the sight of shariah.

Crowdfunding as an Alternative Mode of Financing for Micro and Small Enterprises: A Proposed Qard-al-Hasan Contract

“…Therefore, it is understood that Qard al-Hasan is purely a non-profit loan which is aimed at helping the needy n the society. However, Abdullah (2015) stressed that arguably, from the prism of Shari'ah, Qard-al-Hasan is neither certainly a transaction nor a gift, nonetheless, it occur within the two, which implies that Qard al-Hasan merge the two features together; the features of being a transaction and that of a gift.…”

Evolution in Waqf Jurisprudence and Islamic Financial Innovation

“…For instance, according to Kahf (1999) the jurisprudential scope for voluntary charity is extensively open in Sharīʿah, and thus there seems no valid reason why a waqf shall be necessarily perpetual. In this regard, the closest proximate for the analogy of temporary waqf can be found in the Sharīʿah-prescribed benevolent loan (qarḍ ḥasan) with the only difference that while the latter entails the transfer of ownership of the subject matter with the condition of its equal return after a while, the former warrants the suspension of the ownership for a defined period of time (Abdullah, 2015). Thus, apparently, the concept of temporary waqf (waqf muʾaqqat) is not in conflict with jurisprudential rulings on waqf (Kahf, 1999;Manjoo, 2012).…”

Financial Determinants of Qardhul Hasan Financing Growth: Evidence from Islamic Banks in Indonesia

“…19/DSN-MUI/IX/2000 defined qardh as the loans which are given to needy depositor (muqtaridh). Meanwhile, Abdullah (2015) has distinguished between qardh and qardhul hasan. Qardhul hasan is a qardh contract which based on sincerely seeking reward from Allah, avoid from riba, and the source of qardh both halal and legal.…”

“…Abdullah (2015) showed the lower of default risk on qardhul hasan financing up to 1% compared with nonperforming financing (NPF) ratio in Jordan banks in the amount of 5,6% in 2014. Indeed, NOF ratioof qardhul hasan is less comparing with the average of NPF ratio from 2010 until 2014 up to 7,4%.…”