Qard Hasan Agreement Template

To follow the world of Islamic finance, one must understand Islamic law or Sharia law. To comply with Shariah, you must follow many specifics regarding product or service transfers, sales, leasing, leases or loans. Qard means a given loan for something good or help someone in the name of Allah. Hasan or Hassan means good or acceptable; faithful faith. Qardh also appears in many hadiths. Unlike the Koran, none of the hadiths in the collections of Bukhari, Muslim, Abu Dawud, Nasa`i, Ibn Majah, Tirmidhi, Muwatta, Musnad Ahmad or Darimi contains the expression qardh al-hasan. All use qardh without qualifiers. [6] Qardh al-hasan (Arabic: “, transl. The loan is a form of zero-rate loan (fungible marketable assets) that is extended by a lender on the basis of goodwill (ihsan) to a borrower. Al-Qardh is, from the point of view of sharia-man, a non-common contract, because it is an organization that is granted only in favor of tabarru` (donation). This is why al-Qardh al-hasan is a free credit granted to people in need for a fixed period.

At the end of this period, the face value of the loan (asl al-qardh) must be quantified. In other words, shari`a prohibited the determination of a deductible for the lender, since it is Riba, whether the surplus is expressed in quality or quantity or if it is a material element or benefit. However, it is permissible for the repayment of qardh (removal of the loan) to be made with a surplus (material elements, benefit, benefit, etc.) provided that such a surplus is not expressly defined in the loan agreement or agreed in advance (by collusion or tawatu).) Personalize the template for the LawDepot credit agreement for a variety of lenses, including: Qardh (Arabic:) means “cut” because the lender has historically cut off some of its assets to lend to the borrower. The word hasan derives from Ihsan (in Arabic) which is translated as beautiful or beautiful. [1] [2] [3] Qardh al-hasan supports the main principle of brotherhood. In addition, there are benefits such as helping the poor, building an increased relationship between rich and poor, equal distribution of national income among all citizens, eliminating caste and unemployment differences, and the Great Reward of the Day of Resurrection. [12] Qardh al-hasan`s contracts between Islamic banks and borrowers stipulate that the borrower must repay only the amount borrowed, although the borrower can repay additional funds as a thank you. Loans like this one are used to try to reduce poverty and generate economic growth. The Quran also introduced it as an eminent element like Sadaqah, Zakat and Waqf, which is a necessary concept to ensure the well-being of society.

[1] In addition, such a contract must be renewed of goodwill. The debtor is only required to repay the amount originally borrowed, without any riba or interest. This type of agreement usually does not occur with a Muslim mortgage, but in some good faith agreements they can. In the end, according to the Islamic financial laws of Sharia, any credit should always be without profit. For Qard Hassan, qard often means a bank deposit, which in the North American banking sector means a loan to the bank to use until the depositor asks for restitution.

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