MAHYUDDIN KHALID

emkay@salam.uitm.edu.my

CONTENT
DEFINITION

EVIDENCES

PILLARS
QARDH AL-HASSAN OBJECTIVES

DEFINITION EVIDENCE PILLARS OF AL-QARDH CONDITIONS OF AL-QARDH QARDH AL-HASSAN EVIDENCE OBJECTIVES OF QARDH AL-HASSAN APPLICATION OF QARDH AL-HASSAN

APPLICATION

DEFINITION
DEFINITION

EVIDENCES

PILLARS
QARDH AL-HASSAN OBJECTIVES

APPLICATION

Qardh: Loan/ Debt Literally: To cut something off; money given to the borrower is called Qardh since portion that has been cut off from the property of the lender Also known as al-Salaf or al-Dayn Technically: Specific contract on transferring a specified property to another party on condition that a similar property will be given back in return

NATURE OF AL-QARDH
DEFINITION

EVIDENCES

PILLARS
QARDH AL-HASSAN OBJECTIVES

The property can be any type of assets ranging from cash money, livestock or business It is called qardh, as through this contract a certain part of the lender's property is cut off and given to the borrower. Qardh refers to a contract through which a lender gives a certain homogenous property to a borrower on the condition that the latter is responsible to return a similar property immediately upon a demand or at a specified time.

APPLICATION

EVIDENCE
Quran
DEFINITION EVIDENCES

PILLARS
QARDH AL-HASSAN OBJECTIVES

Hadith
Narrated by Anas ibn Malik: The prophet saw said: I saw on the night of Isra something written on the gate of the paradise. Donation(sadaqah) is rewarded 10 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 donation asked for it while he actually has something, but the borrower will not ask for loan except when there is a necessity

APPLICATION

EVIDENCE
DEFINITION

Ijma:
The scholar had formed an ijma that Qardh is permissible in Islam

EVIDENCES

PILLARS
QARDH AL-HASSAN OBJECTIVES

This contract is classified under the category of contracts pertaining to the utilization of usufruct (aqad al-manfaah) There is no actual transfer or exchange of property involved.

APPLICATION

PILLARS OF QARDH
DEFINITION

Muqridh
Creditor or Lender

EVIDENCES

Muqtaridh
Debtor or Borrower

PILLARS
QARDH AL-HASSAN OBJECTIVES

Maal
Property

Sighah
Ijab: Offer Qabul: Acceptance

APPLICATION

FLOW OF AL-QARDH
DEFINITION

EVIDENCES

Muqridh (Creditor)
Qabul (Acceptance)

PILLARS
QARDH AL-HASSAN OBJECTIVES

Ijab (Offer)

Maal (Property/ Asset)

APPLICATION

Muqtaridh (Debtor)
8

CONDITIONS OF QARDH
DEFINITION

Ijab (Offer) and Qabul (Acceptance)

Must be in a very clear and concise type of sighah (offer & acceptance)

EVIDENCES

Ahliah
Eligibility of the contracting parties (sane, adults & qualified)

PILLARS
QARDH AL-HASSAN OBJECTIVES

Quantity and Quality

Must be specified in quantity, weight & quality Items that are not mixed with other material

APPLICATION

QARDH AL-HASAN
DEFINITION

Literally
Qardh means cutting off. Hasan means benevolence, beautiful, and kindness.

EVIDENCES

PILLARS
QARDH AL-HASSAN OBJECTIVES

APPLICATION

The term al-qard al-hasan literally means beneficial loan, benevolent loan, gratuitous loan, and beautiful loan. A debt that is free from any type of predetermined condition or promise to repay back more than the original amount stated in the contract, but a special token is sincerely given by the debtor to the lender during debt settlement not because any written agreement or any predetermined provision or term

10

QARDH AL-HASAN
DEFINITION

EVIDENCES

Under Qardh al-Hassan, borrowers or debtor con voluntarily give some extra amount more than the loan principle provided that:
1. Not stated in the contract 2. Not have agreed upon 3. Not predetermined in any manner by both parties

PILLARS
QARDH AL-HASSAN OBJECTIVES

APPLICATION

11

EVIDENCE
Quran:
DEFINITION EVIDENCES

PILLARS
QARDH AL-HASSAN OBJECTIVES

APPLICATION

The Quran verses explains Qardh al-Hassan between Allah and the believers whereby it is actually an offer from Allah for them to lend their energy, time and property in Qardh al-Hassan manner 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

12

EVINDENCE
DEFINITION

Hadith:
Abu Rafi said: The prophet (s.a.w) borrowed a young camel and then the camels from the zakat came to him. He ordered me to repay the man his young camel. I said, I can only find a good camel in its seventh year among the camels The prophet said, Give it to him. The best of people are those who discharge their debts in the best manner

EVIDENCES

PILLARS
QARDH AL-HASSAN OBJECTIVES

APPLICATION

13

OBJECTIVES OF QARDH AL-HASAN

DEFINITION

EVIDENCES

PILLARS
QARDH AL-HASSAN OBJECTIVES

APPLICATION

To help the needy fellow people. To establish better relationship among poor and the rich. To mobilize wealth among people in the society. To facilitate the poor to create new jobs market and business ventures by using their merits, skills and expertise. To establish a caring society. To eradicate unemployment problem from the society. Great reward in the Hereafter for qardh al-hasan,

14

CHARACTERISTICS OF QARDH AL-HASAN

DEFINITION

EVIDENCES

PILLARS
QARDH AL-HASSAN OBJECTIVES

It is flexible with respect to collateral. Documentary procedures are usually very simple Loans are usually small in size, approval procedures rapid and disbursement quick There are no interest charges involved The fund has easy access to capital contributors and borrowers because of its local base The fund managers, who are drawn from capital contributors, are fully accountable

APPLICATION

15

MODERN APPLICATION
DEFINITION

EVIDENCES

Personal financing Government Investment Certificate Hybrid Islamic Credit Card

PILLARS
QARDH AL-HASSAN OBJECTIVES

APPLICATION

16

END OF CHAPTER
DEFINITION

EVIDENCES

PILLARS
QARDH AL-HASSAN OBJECTIVES

APPLICATION

17