How Qard Hasan works
How Qard Hasan works
‹ Interest Free Loan Fund Overview
قَرْضًا حَسَنًا · Qard Hasan
An interest-free loan, given for the sake of Allah.
Qard Hasan, also called Qardan Hasana or Korze Hasana, means "a goodly loan". It is a loan with no interest and no hidden charge: the borrower repays only what they borrowed. It is given for the reward of Allah, not for any worldly gain.
This fund gathers donations and loans from people who want to help, and lends that money, interest-free, to people in need through centres based at their local mosque. Every taka is recorded and published here for anyone to check.
- 2:245
- 5:12
- 57:11
- 57:18
- 64:17
- 73:20
A mosque-based model
The fund works through the mosques of Bangladesh.
Every centre is a mosque
A centre is the mosque of an area. It lends to the people of that area, who know each other and whom the mosque knows.
The imam leads the team
Each centre has its own management team. In most centres the imam of the mosque is the team leader.
Character and prayer come first
Before a loan is approved, the imam confirms the borrower's character and how often they pray in congregation at the mosque.
The mosque at the heart of its area
The imam's word decides who is trusted with the fund's money, which gives the imam and the mosque a real place in the life of the area.
Who does what
Six kinds of people make the fund work.
Donors
Anyone who gives or lends money to the fund. Their name is published with what they gave, unless they ask to stay anonymous.
Central management
Keeps the fund's accounts, allocates money to the centres and approves loans. Every payout below the top level is approved by a second person.
Centres
Each centre is a mosque, run by its own management team with the imam usually as team leader. It knows its borrowers, lends from its own account and collects the instalments.
Borrowers
People in need who borrow to work, study, treat illness or get through hard times. Their name, photo and repayments are published.
Guarantors
Each borrower names two: a close family member, and one other person who knows them. Both stand by the promise to repay.
Advisors
Respected and influential people of the area, such as the member of parliament, the police superintendent, the officer in charge of the police station and local leaders. They step in when a loan is hard to recover.
Two ways to give
They are kept apart in the accounts and never mixed.
Not repayable
Permanent donation
Given once and kept in the Qard Hasan fund for ever, as sadaqah jariyah. It is lent, recovered and lent again, so it goes on helping people for as long as the fund lasts.
- General donationLent to any borrower the committee approves.
- ZakatKept apart and lent only to borrowers eligible for zakat.
- Earmarked donationLent only for the purpose, or the person, the donor names.
Repayable
Loan from donor
Money a donor lends to the fund. It is lent to borrowers in the same way, and the fund repays it to the donor whenever they ask. The donor, too, receives nothing extra.
- Loan from donorShown in the accounts as money the fund owes.
Giving quietly is its own good. A donor who asks not to be named appears on every public page as an anonymous donor, with their code only.
How the fund works
The whole process, shown with ৳ 1,000. This is an example: the fund's real figures are further down this page.
Permanent donation
- General donation
- Earmarked donation
- Zakat
Loan from donor
- Loan from donor
1Four donors give ৳ 1,000
- Permanent donationDonor 1৳ 400General donationPermanent. Lent to any borrower approved by the committee.
- Permanent donationDonor 2৳ 150Earmarked donationPermanent. Lent for the purpose named by the donor.
- Permanent donationDonor 3৳ 250ZakatPermanent. Lent only to borrowers eligible for zakat.
- Loan from donorDonor 4৳ 200RepayableNot a donation. Repaid to the donor whenever they request it.
2All of it goes into one fund
The Qard Hasan interest-free loan fund
৳ 1,000
- Permanent donations (never repaid)
- ৳ 800
- Loans from donors (repayable to Donor 4)
- ৳ 200
Where the money is
- Given to the 3 centres to lend
- ৳ 950
- In the fund's own bank account, available to give to a centre
- ৳ 50
3Central management gives ৳ 950 to the centres
- Centre management
Centre 1৳ 400
4The centre lends to its borrowers
Borrower 1 2 loans৳ 150
- Loan 1৳ 100
- Loan 2৳ 50
Borrower 2 1 loan৳ 200
- Loan 1৳ 200
Cash in hand and at the bank, available to lend৳ 50৳ 350 lent + ৳ 50 in hand = ৳ 400
- Centre management
Centre 2৳ 300
4The centre lends to its borrowers
Borrower 3 2 loans৳ 200
- Loan 1৳ 120
- Loan 2৳ 80
Borrower 4 1 loan৳ 60
- Loan 1৳ 60
Cash in hand and at the bank, available to lend৳ 40৳ 260 lent + ৳ 40 in hand = ৳ 300
- Centre management
Centre 3৳ 250
4The centre lends to its borrowers
Borrower 5 2 loans৳ 150
- Loan 1৳ 100
- Loan 2৳ 50
Borrower 6 3 loans৳ 70
- Loan 1৳ 30
- Loan 2৳ 20
- Loan 3৳ 20
Cash in hand and at the bank, available to lend৳ 30৳ 220 lent + ৳ 30 in hand = ৳ 250
5The borrowers repay ৳ 830, exactly what they borrowed
The fund's ৳ 1,000 is fully accounted for: ৳ 830 outstanding, and ৳ 170 in cash at the centres and in the fund's own account.
No interest and no fees: borrowers repay exactly what they borrowed. The money returns to the fund and is lent again to the next borrower. When Donor 4 asks, their ৳ 200 is repaid; the ৳ 800 of donations stays in the fund permanently and continues to be lent.
Who can get an interest-free loan
What a borrower should have, and what they should not.
Should have
- Good moral character Confirmed by the imam of the local mosque.
- Daily prayer at the mosque in congregation For Muslim men. Confirmed by the imam of the local mosque.
- A real and sound reason for the loan Work, study, treatment, or a genuine need.
- The means and the intention to repay, early if possible Every taka repaid is lent to the next person in need.
- Collateral, if you can Not required, but it speeds up approval.
Should not have
- A loan from the fund that is overdue
- A record of not repaying what was borrowed
- A purpose that is forbidden in Islam, or harmful
- False information or documents
What we check before a loan
Everything above, and these, before a loan is approved and disbursed.
- Character and prayerThe imam's word on the borrower's character and their prayer at the mosque.
- The reasonThat the need is real and the amount suits it.
- The means to repayIncome, family and other loans, so the instalments can be met.
- IdentityThe National ID of the borrower and of both guarantors.
- The two guarantorsThat they know the borrower and agree to stand by the loan.
- The video declarationThe borrower's own recorded promise to repay.
- The repayment recordHow the borrower kept to any earlier loan.
- A second approvalNo money moves until a second person approves it.
Security for the loan
No valuable collateral is asked for. The loan rests on trust, and the trust is checked.
The imam's certificate
The management contacts the imam of the mosque nearest to the borrower, and asks for a certificate that the borrower is of good character and prays daily at the mosque. A borrower who has these two needs no property to get a loan.
A video declaration
The borrower records, in their own words, their promise to repay.
Two guarantors
A close family member, and one other person who knows them.
Collateral, if offered
Not required. Offering some speeds up approval.
Step by step
The way for a borrower, and the way for a donor.
A borrower's path
1Register
Online, or at the mosque centre. The centre gets to know the borrower and their family. Register as a borrower ›
2Apply for a loan
Say how much is needed and what it is for, name two guarantors and record the video declaration. Apply for a loan ›
3The imam's word
The imam of the nearest mosque certifies the borrower's character and prayer.
4Review
The centre and central management check the application, the documents and the guarantors.
5Approval
A second person approves before any money moves. A repayment schedule is made, the same total as the loan.
6Disbursement
The money is paid in cash, to a bank or to a mobile account, and a receipt is given.
7Instalments
Weekly or monthly. The centre records each one on a phone and the borrower gets a receipt.
8Fully recovered
The loan is closed. A good record makes the next loan easier, and anyone can check it. Repayment record check ›
A donor's path
1Choose how to give
A permanent donation (general, zakat or earmarked), or a loan from donor that you can have back. Donate ›
2Send the money
By bKash, Nagad, bank or in person, and tell us the transaction reference on the Donate form.
3Confirmed and recorded
The office matches the payment, records it in the books and sends a receipt.
4Lent through the mosques
The money goes to borrowers whom the imam and the management have checked.
5Recovered and lent again
Each taka that comes back helps the next borrower, again and again.
6See it for yourself
Your donation is on the donors page and in the published accounts. Donors ›
7A loan from donor comes back
Whenever you ask, the fund repays it in full.
When an instalment falls due
Every loan is other people's trust, so every instalment is followed up, kindly and firmly.
- 1
We get in touch
With the borrower, their family and their guarantors.
- 2
We find out why
Is the borrower in hardship, or choosing not to pay?
If the borrower is in hardship
- More time to pay, with a new schedule
- Help to get through the difficulty
- Even a new loan, where that helps them back on their feet
If the borrower is not paying on purpose
Each step is taken only if the one before it fails.
- 1We talk with the borrower and give more time, with a clear deadline.
- 2A collection agent is appointed, at the borrower's cost.
- 3Any collateral is sold.
- 4The guarantors are held liable.
- 5Our advisor panel steps in: respected people of the area such as the member of parliament, the police superintendent, the officer in charge and local leaders.
- 6Our legal team takes legal action.
Nothing is ever added to the loan for being late. The borrower repays what they received.
Consequences if a loan is not repaid on time
In this life
- You will be exposed: your name, your details, the area you live in and your overdue amount will be published on our website and on social media.
- Your guarantors will be contacted and held liable for the loan.
- Any collateral you gave will be sold to recover the loan. Anything above what you owe is returned to you.
- A Collection Agent will be appointed, and the cost will be borne by you.
- Legal action will be taken, and our highly qualified legal team will pursue you.
- You may not receive another loan from the fund.
No interest, fee or penalty is ever added. You only repay what you received.
In the Hereafter
- "O you who believe, fulfil your contracts." Al-Ma'idah 5:1
- Delay in repaying a debt by someone who is able to pay is injustice. Sahih al-Bukhari 2287
- The soul of a believer is held back by their debt until it is repaid. Jami at-Tirmidhi 1078
- Allah pardons every sin of a martyr, except debt. Sahih Muslim 1886
- The Prophet (peace be upon him) did not lead the funeral prayer of someone who died in debt until another person took the debt on. Sahih al-Bukhari 2289
Open for anyone to check
The money is other people's sadaqah and zakat, so the accounts are published as they are written, the moment they are written.
Published, live
- Every borrower's name, centre and photo, their loans and every instalment
- Every donation and loan from donor, with the donor's name unless they asked to stay anonymous
- The balance sheet, the income and expenditure, the changes in the fund and the cashbook
- Who pays on time and who is overdue
Never published
- National ID numbers and ID cards
- Full mobile numbers
- Documents and testimony videos
- The name of a donor who asked to stay anonymous
- Every event writes two sidesA donation, a loan, an instalment: each is posted to the books automatically, as money in on one side and where it came from on the other. The two sides must be equal or nothing is saved.
- Nothing is rubbed outAn entry once made cannot be edited or deleted. A mistake is corrected by a second entry that reverses it, so the history stays whole.
- One set of booksEvery centre writes in the same books, not books of its own, so money moved between centres can never be recorded on one side only.
The fund's own books, live:
The fund today
Not an example: these are the fund's own figures, from its books.
Questions people ask
For donors
How can I give to the Qard Hasan fund?
In two ways: a permanent donation, an ongoing charity (sadaqah jariyah) that stays in the fund for ever, or a loan from donor, which the fund repays whenever you ask. You can give once, or every month or year. Donate ›
What happens to my donation?
It goes into the one Qard Hasan fund and is lent, interest-free, to people in need through the mosque centres. When it is recovered it is lent again, so the same money helps one person after another.
Can I choose how my donation is used?
Yes. Give an earmarked donation and name the purpose, such as education, treatment or a particular person, and it is lent only for that. Otherwise it is lent wherever the need is.
Can I give my zakat here?
Yes. Mark your donation as zakat. It is kept apart in the books and lent only to borrowers eligible for zakat, and the zakat part of the fund is reported separately.
Can I give in memory of a loved one?
Yes. Many donors give as sadaqah jariyah for a family member who has passed away, or as a blessing for their family. Write the dedication on the Donate form and it is recorded with your donation.
How do I know my donation is used properly?
Every donation, loan and instalment is published on this site from the fund's own double-entry books, which must balance. You can see each borrower with their name, photo and centre, each centre and each donation, and add them up yourself.
What if a borrower does not repay?
Every instalment is followed up. A borrower in genuine hardship is given time and help. A borrower who will not pay is taken through the steps of recovery, from a clear deadline to the guarantors, the advisor panel and the courts.
If I lend money to the fund, can I have it back?
Yes. A loan from donor is repaid to you whenever you ask. A permanent donation is not repaid: it stays in the fund and keeps being lent.
Can I give without my name being shown?
Yes. Ask to stay anonymous and you will appear as an anonymous donor, by your donor code only. The amount is still counted in the accounts.
For borrowers
Who can apply for an interest-free loan?
People facing hardship, students who need help with their studies, small traders, and families facing an emergency. The imam of the local mosque must confirm the applicant's good character and, for Muslim men, their daily prayer in congregation. Apply for a loan ›
What documents are needed?
The application form, the National ID of the borrower and of both guarantors, a photo, the video declaration and the imam's certificate.
Is there any interest or service charge?
None. Qard Hasan is completely interest-free. The borrower repays only the amount they borrowed, with no interest, no service charge, no application fee and no charge for paying late.
What if I cannot repay on time?
Tell your centre as early as you can. If the reason is genuine, you may be given more time and a new schedule, and the centre will help you through it. If someone chooses not to repay, the fund acts as the loan agreement says: we are trustees of the donors' money.
How are the instalments arranged?
Weekly or monthly, to suit the borrower's income. The total is always the amount borrowed.
How much can I borrow?
There is no fixed amount. It depends on the purpose, the need and how much the centre has available to lend.
Is collateral required?
No valuable collateral is required. The loan rests on the imam's certificate, two guarantors and your video declaration. Offering collateral, such as gold, speeds up approval.
Do I need guarantors?
Yes, two: a close family member, and one other person who knows you. They help protect the donors' money and stand by your promise to repay.
Will my details be kept private?
Your name, photo, centre, loan and repayments are published so that anyone can check the fund. Your National ID, mobile number, documents and video are never published.
Can I repay more than I borrowed, as thanks?
Yes, if you choose to. It is recorded as a gift (hadiyah). It can never be agreed in advance or written into the loan, because that would be riba.
Can I have another loan?
Usually the first loan is repaid before another is given, though a borrower in genuine hardship may be helped with a new loan. After repaying in full you may apply again; first-time applicants may be given priority.
How do I apply?
Fill in the online application, or go to your mosque centre. The team checks the need and your documents before approval. Apply for a loan ›
Can I check how someone has repaid before?
Yes. The repayment record check shows how a borrower has kept to their past schedules. Repayment record check ›
Be part of it
Every taka given here is lent again and again. Give once, and keep helping.
Contact us
- Phone+880 01601009192
- Emailqh@quranicfinance.com
- AddressDhaka, Bangladesh