Publication:
Qard hasan: its Shari’ah rules and applications in Islamic finance
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Date
2013
SDG:
Abstract
This paper provides a detailed explanation about the contract of qard (loan) as approved by Shari’ ah and analyses how it is applied in the contemporary Islamic finance industry. With regard to research mentod, it examines various Islamic banking and finance products sturctured on the principle of qard contracts and discussed the possible risks of non-Shari’ ah compliance in their structuring, and how they can be addressed and resolved. The main finding is that the issue og profiting from qard hasan contracts is very sensitive and many institutions are possibly compromising on Shari’ah compliance through use of service charges and customary hibah-giving, etc. It is significant and attracts the attention of Islamic financial institutions to re-visit their products structured on qard hasan contracts. In general, it outlines the features of qard hasan contract and its application for benefit of the practitioners of Islamic banking all over the world.
Keywords
Qard hasan , Hibah , Service charge , Islamic finance , Shari’ ah compliance
Citation
Najeeb, S. F.. & Lahsasna, A. (2013). Qard hasan: its Shari’ah rules and applications in Islamic finance. Journal of Islamic Business and Management, 3(1), pp. 15-34.
Publisher
Riphah Centre of Islamic Business (RCIB)