1. MAHYUDDIN KHALID  emkay@salam.uitm.edu.my

2. CONTENT
 DEFINITION
DEFINITION
 EVIDENCE
EVIDENCES  PILLARS OF AL-QARDH
 CONDITIONS OF AL-QARDH
PILLARS
 QARDH AL-HASSAN
QARDH  EVIDENCE
AL-HASSAN
 OBJECTIVES OF QARDH AL-HASSAN
OBJECTIVES
 APPLICATION OF QARDH AL-HASSAN
APPLICATION
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3. DEFINITION
 Qardh: Loan/ Debt
DEFINITION
 Literally:
EVIDENCES  To cut something off; money given to the borrower
is called Qardh since portion that has been cut off
PILLARS from the property of the lender
 Also known as al-Salaf or al-Dayn
QARDH
AL-HASSAN  Technically:
 Specific contract on transferring a specified
OBJECTIVES
property to another party on condition that a
similar property will be given back in return
APPLICATION
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4. NATURE OF AL-QARDH
 The property can be any type of assets ranging from
DEFINITION
cash money, livestock or business
 It is called qardh, as through this contract a certain
EVIDENCES
part of the lender's property is cut off and given to the
PILLARS
borrower.
 Qardh refers to a contract through which a lender
QARDH gives a certain homogenous property to a borrower on
AL-HASSAN
the condition that the latter is responsible to return a
OBJECTIVES similar property immediately upon a demand or at a
specified time.
APPLICATION
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5. EVIDENCE
 Quran
DEFINITION
EVIDENCES
PILLARS  Hadith
 Narrated by Anas ibn Malik: The prophet saw said:
QARDH
AL-HASSAN
 I saw on the night of Isra’ something written on the gate
of the paradise. Donation(sadaqah) is rewarded 10
OBJECTIVES
folds, and qardh is rewarded 18 folds.
 I asked Gibrail: Why is it giving Qardh is better than
donation? He replied: Because the receiver of the
APPLICATION
donation asked for it while he actually has something,
but the borrower will not ask for loan except when there
is a necessity
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6. EVIDENCE
 Ijma:
DEFINITION
 The scholar had formed an ijma’ that Qardh is
permissible in Islam
EVIDENCES
 This contract is classified under the category of
PILLARS
contracts pertaining to the utilization of usufruct
(aqad al-manfa’ah)
QARDH
AL-HASSAN  There is no actual transfer or exchange of property
involved.
OBJECTIVES
APPLICATION
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7. PILLARS OF QARDH
 Muqridh
DEFINITION
 Creditor or Lender
EVIDENCES  Muqtaridh
 Debtor or Borrower
PILLARS  Maal
 Property
QARDH
AL-HASSAN  Sighah
OBJECTIVES
 Ijab: Offer
 Qabul: Acceptance
APPLICATION
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8. FLOW OF AL-QARDH
DEFINITION
Muqridh (Creditor)
EVIDENCES
Qabul (Acceptance)
PILLARS
Ijab (Offer)
QARDH Maal
AL-HASSAN
(Property/ Asset)
OBJECTIVES
APPLICATION
Muqtaridh (Debtor)
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9. CONDITIONS OF QARDH
 Ijab (Offer) and Qabul (Acceptance)
DEFINITION
 Must be in a very clear and concise type of sighah (offer
& acceptance)
EVIDENCES
 Ahliah
PILLARS  Eligibility of the contracting parties (sane, adults &
qualified)
QARDH
AL-HASSAN
 Quantity and Quality
 Must be specified in quantity, weight & quality
OBJECTIVES
 Items that are not mixed with other material
APPLICATION
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10. QARDH AL-HASAN
 Literally
DEFINITION
 Qardh means cutting off.
EVIDENCES
 Hasan means benevolence, beautiful, and kindness.
 The term al-qard al-hasan literally means beneficial
PILLARS loan, benevolent loan, gratuitous loan, and beautiful
loan.
QARDH
AL-HASSAN  A debt that is free from any type of predetermined
condition or promise to repay back more than the
OBJECTIVES
original amount stated in the contract, but a special
token is sincerely given by the debtor to the lender
APPLICATION
during debt settlement not because any written
agreement or any predetermined provision or term
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11. QARDH AL-HASAN
 Under Qardh al-Hassan, borrowers or debtor con
DEFINITION
voluntarily give some extra amount more than the
loan principle provided that:
EVIDENCES
1. Not stated in the contract
PILLARS 2. Not have agreed upon
3. Not predetermined in any manner by both parties
QARDH
AL-HASSAN
OBJECTIVES
APPLICATION
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12. EVIDENCE
 Quran:
DEFINITION
EVIDENCES
PILLARS
 The Quran verses explains Qardh al-Hassan
QARDH
AL-HASSAN
between Allah and the believers whereby it is
actually an offer from Allah for them to lend their
OBJECTIVES energy, time and property in Qardh al-Hassan
manner
APPLICATION  They will receive back all the things that they had
sacrificed for the sake of Allah plus all extra
rewards that will be given to them
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13. EVINDENCE
 Hadith:
DEFINITION
 Abu Rafi said: The prophet (s.a.w) borrowed a young
camel and then the camels from the zakat came to him.
EVIDENCES
He ordered me to repay the man his young camel.
 I said, I can only find a good camel in its seventh year
PILLARS
among the camels
QARDH  The prophet said, “Give it to him. The best of people are
AL-HASSAN those who discharge their debts in the best manner”
OBJECTIVES
APPLICATION
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14. OBJECTIVES OF QARDH AL-HASAN
 To help the needy fellow people.
DEFINITION
 To establish better relationship among poor and the
EVIDENCES
rich.
 To mobilize wealth among people in the society.
PILLARS  To facilitate the poor to create new jobs market and
QARDH
business ventures by using their merits, skills and
AL-HASSAN expertise.
OBJECTIVES
 To establish a caring society.
 To eradicate unemployment problem from the
APPLICATION society.
 Great reward in the Hereafter for qardh al-hasan,
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15. CHARACTERISTICS OF QARDH AL-HASAN
 It is flexible with respect to collateral.
DEFINITION
 Documentary procedures are usually very simple
EVIDENCES  Loans are usually small in size, approval
procedures rapid and disbursement quick
PILLARS  There are no interest charges involved
QARDH  The fund has easy access to capital contributors and
AL-HASSAN
borrowers because of its local base
OBJECTIVES  The fund managers, who are drawn from capital
contributors, are fully accountable
APPLICATION
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16. MODERN APPLICATION
 Personal financing
DEFINITION
 Government Investment Certificate
EVIDENCES  Hybrid Islamic Credit Card
PILLARS
QARDH
AL-HASSAN
OBJECTIVES
APPLICATION
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17. END OF CHAPTER
DEFINITION
EVIDENCES
PILLARS
QARDH
AL-HASSAN 
OBJECTIVES
APPLICATION
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