Interest-Free Loan
Interest-Free Loan – also known as Qard Hasan, Qardan Hasana, or Korze Hasana – is an Islamic financial concept referring to a loan provided completely free of cost, with no interest or hidden charges. Under this arrangement, the borrower is required to repay only the principal amount, without any additional fees, markups, or charges.
This loan is extended purely for spiritual benefit (sawab) and the reward of Allah, not for any worldly gain. It is fully compliant with Shariah principles, which strictly prohibit riba (interest) in all forms—whether charged or paid.
This loan reflects the ethical and socially responsible nature of Islamic finance, promoting fairness, compassion, and mutual support within the community.
Absolutely Free
A loan free from interest, markups, or hidden charges. Only the principal amount is to be repaid.
Not for Profit or Reward
Given solely for the sake of support and kindness. No expectation of profit or worldly return.
Community Development
A means to ease financial burden on individuals. Encouraging growth, unity, and collective welfare.
Shariah Compliant
In full accordance with Islamic principles. Free from riba, ensuring fairness and justice.
مَن ذَا الَّذي يُقرِضُ اللَّهَ قَرضًا حَسَنًا فَيُضاعِفَهُ لَهُ وَلَهُ أَجرٌ كَريمٌ
Who is it that will lend Allah a goodly loan, that He may multiply it for him and [that] there may be a noble reward for him?
–Surah Al-Hadid 57:11
How It Works
Application
Submit a request through the application form in line with all stated requirements.
Review
We review the request to confirm need and eligibility in line with our policy.
Disbursement
Funds are provided subject to approval and availability of fund .
Financial Accounts.
Struggle to Smile: Qard Hasan in Action
Donors' FAQ
Donors can contribute in two ways:
- Loan – A contribution given as a loan to the fund, which can be repaid after the agreed time.
- Donation – A permanent Sadaqah Jariyah (ongoing charity) by directly donating to the fund through our approved channels.
Contributions may be made as one-time donations or as recurring monthly or annual support.
Your donation is pooled into the Qard Hasan fund and used to provide interest-free loans to individuals in need. Once repaid, the funds are recycled to help new beneficiaries, maximizing impact.
In some cases, yes. Donors may choose to dedicate funds for education, healthcare, or emergency relief. Otherwise, donations go into a general pool to be distributed according to need.
We maintain full transparency by keeping detailed financial records, sharing periodic impact reports, and conducting audits. These are published on our website and social media for public access. List of borrowers with contact details is also available for instant verification. Donors receive regular updates on how their contributions are creating real impact.
Yes, many donors dedicate their contributions as sadaqah jariyah for deceased relatives or as blessings for their families. This intention can be recorded with your donation.
We provide general updates and stories of how donations have impacted lives, ensuring privacy while keeping donors informed. But you want specific story of any person we will provide it.
Borrowers are encouraged and supported to repay their loans. In cases where repayment is delayed or becomes impossible due to genuine hardship, no penalties are imposed, and donor contributions are treated as charity. However, in cases of intentional default, we follow a series of steps that may include legal action, in line with our policy.
We follow clear policies, strict oversight, and a structured review process to ensure funds are allocated fairly and transparently. A governance committee oversees disbursement and repayment, and every donor automatically becomes a member of this committee — including you.
Transparency is our foundation. All information is publicly available, including the real-time balance sheet, cash book, and lists of donors and borrowers with contact details, so that anyone can verify at any time.
Donors receive periodic reports showing the number of people supported, funds disbursed, and stories of community transformation. Transparency and accountability are our priorities.
If the donation is intended as zakat, we ensure it is distributed in line with Sharia requirements. Donors must specify if their contribution is zakat so it can be allocated correctly.
Borrowers' FAQ
Individuals facing financial hardship, students in need of educational support, small entrepreneurs, or families dealing with emergencies may apply. Eligibility is determined based on genuine need, compliance with our policies, and the availability of funds.
Applicants usually need to provide proof of identity - NID for borrower and guarantor, application form and other supporting documents based on our policy.
No. Qard Hasan is a completely interest-free loan. Borrowers are only required to return the principal amount without any additional charges, ensuring Sharia compliance.
We understand that situations may change. If you face difficulty in repayment, please inform us as early as possible. We will review the reasons, and if the cause is genuine and unavoidable, we may reschedule your repayment or extend the period to support you. However, in cases of willful default, necessary actions will be taken according to our policy and loan agreement. Please remember, we are trustees of the donors’ funds and have a responsibility to protect their trust.
Repayment terms vary depending on the borrower’s financial condition. Flexible schedules are offered to ensure affordability; as like weekly or monthly repayment.
In most cases, a borrower must settle the existing loan before applying for a new one. However, exceptions may be considered in cases of genuine hardship or emergencies.
Yes, all borrower information is treated as confidential. However, to maintain transparency and accountability, certain details may be shared on our website or social media in line with our policy and loan agreement.
The loan amount is not fixed for everyone; it depends on the purpose of the loan, the level of demonstrated need, and the availability of funds.
Collateral requirements depend on the loan amount and the borrower’s reputation. Unlike conventional loans, no collateral is generally required.
- For smaller amounts, we may request the original copy of your National ID (NID) or passport.
- For larger amounts, gold ornaments or similar items may be kept as collateral.
Yes, we require two guarantors to ensure accountability and trust:
- Community Guarantor – For Muslim borrowers, this is the Imam of the nearest mosque. For non-Muslim borrowers, it will be the head of the nearest religious institution (such as a temple or pagoda).
- Family Guarantor – A close family member of the borrower will also act as a guarantor.
Guarantors and Collateral are an important safeguard for the Qard Hasan fund. Since the loans are interest-free and based on trust, guarantors provide an additional layer of responsibility. This system helps protect donor contributions, promotes responsible borrowing, and strengthens trust in the program.
Yes, you may voluntarily return more than you borrowed as a gesture of thanks. However, this must never be pre-agreed or stipulated in the contract, as that would constitute riba (interest). Any additional amount is treated as a voluntary gift (hibah).
Yes. Once you have successfully repaid a Qard Hasan loan, you are eligible to apply again if you face new needs. Priority, however, may be given to first-time applicants.
You can apply by filling out our application form and providing required details. Our team reviews the request in line with our policies to confirm genuine need before approval.