Qard al-Hasan: The Way of Lending a Good Loan

The term “qard al-hasan” is mentioned in many verses in the Quran. “Qard” refers to money, goods, and the like given on the condition that it is paid back in its worth. In other words, “qard” means “loan.” And “qard al-hasan,” meaning good loan, is an interest-free loan given from halal money with no expectation of gratitude; it is rewarded similarly to sadaqah. Qard al-hasan is a type of infaq (charitable giving) that is deemed most worthy when carried out for the sake of Allah.

Qard al-hasan is interpreted as “lending a good loan to Allah” in many translations of the Qur’an. What’s typically meant here is to give for the sake of Allah. When a Muslim servant spends for the sake of Allah, he does so believing that Allah will reward him in the afterlife. What a servant pays for Allah’s sake is given as a loan repaid by Allah on the Day of Resurrection.

Allah (subhanahu wa ta’ala) says in the 18th verse of surah Al-Hadid: “Indeed, those men and women who give in charity and lend to Allah a good loan will have it multiplied for them, and they will have an honorable reward.” It must not be assumed that “men and women who give in charity” and “those who lend to Allah a good loan” are used in the same meaning in this verse and that these are the same deeds; qard al-hasan means “loaning interest-free” which is different from sadaqah. What is given as sadaqah is not received back, whereas loaning involves the principle of repaying the capital exactly as loaned—no more, no less.

Qard al-Hasan As Loan

Loaning is an excellent deed in the presence of Allah because the person who gives a loan relieves someone troubled enough to have gotten into debt. The Muslim who lends the money, the one who lends a good loan, does, in fact, lend the money to Allah. It is hoped that Allah will give from His endless treasures to His servant who fixed another’s problems by lending them money. Also, one of the great deeds for a lender of qard al-hasan is to postpone the back payment or donate it.

It is also possible that doing kindness after charitable kindness in matters of loaning increases the good deeds exponentially. For example, you lend money to a relative of yours and determine the payback time limit as one year. After a year, you notice that your relative is still in financial difficulty, so you extend the time for six months. After six months, you see that your relative is still in difficulty and therefore extend the time for another six months, after which you realize that your relative is not going to be able to pay their debt back in time, or he may never be able to pay. Therefore,  to not embarrass and burden your relative, you let him know that you waived off the loan.

Many beautiful outcomes can be found in this hypothetical scenario. To name a few:

- First of all, you lent to Allah a good loan by giving qard al-hasan.

- You fixed a problem for a Muslim.

- You maintained the silatu’r-rahm (close, continuous relations with relatives) by taking care of a relative.

- You helped a Muslim brother or sister out of yet another tight spot by deferring the due date.

- You saved your brother trouble by giving up the loan.

- You received a twofold reward by giving sadaqah to your relative: both the reward of giving sadaqah and taking care of your relative.

Granting an extension time for debts and giving it up and donating it is one of the good deeds advised by our Lord: “If it is difficult for someone to repay a debt, postpone it until a time of ease. And if you waive it as an act of charity, it will be better for you, if only you knew.” (Al-Baqarah, 280)

The following hadiths clearly show how virtuous it is to forgive a debt:

The Prophet (sallallahu alayhi wa sallam) said: “There was a merchant who used to lend the people, and whenever his debtor was in difficult circumstances, he would say to his employees, ‘Forgive him so that Allah may forgive us.’ So, Allah forgave him.” (Bukhari, Book 34, Hadith 31) 

“Whoever grants respite to the poor or alleviates it for him, Allah will shade him on the Day of Judgment under His Throne, a Day in which there is no shade except His shade.” (Tirmidhi, Book 14, Hadith 109)

Qard al-Hasan as Sadaqah

Some translators and mufassirs (interpreters) of the Quran construed qard al-hasan as sadaqah. Elmalılı Hamdi Yazır explains the following verse from surah Al-Hadid “Who is it that will lend to Allah a good loan which Allah will multiply many times over for them, and they will have an honorable reward?” (Al-Hadid, 11):

“Although qard al-hasan means ‘a good loan,’ here it means selecting the best of goods and spending it on useful things with sincere intentions.

It is stated that qard al-hasan has ten qualifications:

1. The goods or money to be given as qard al-hasan must be halal because Allah is clean and does not love what is unclean.
2. It must be selected from the best goods one owns.
3. The one who gives qard al-hasan must be in good health, have an average life expectancy and not be gripped by a fear of poverty.
4. It must be given to the neediest and most suited to receive it.
5. It must be given in secret, not in public.
6. The one who gives qard al-hasan must not expect any gratitude.
7. The intention of giving must be for the sake of Allah alone.
8. It must be seen as little and insignificant, even if it is a considerable amount or a valuable possession.
9. It must be selected from the possessions one loves the most.
10. The goods must be taken to the house of the person in need and presented to them in a way that pleases them.” (Hak Dini Kur’an Dili, Volume 7, Page 424)

Another verse where qard al-hasan is mentioned is in surah Al-Baqarah: “Who will lend to Allah a good loan which Allah will multiply many times over? It is Allah who decreases and increases. And to Him you will be returned.” (Al-Baqarah, 245)

Elmalılı M. Hamdi Yazır tells the circumstances of revelation of this verse and interprets it as follows:

“Whoever lends a qard al-hasan to Allah with a sincere heart from his hard-earned wealth and spends it in the way of Allah, Allah multiplies it back to him in the future. Only Allah knows the amount of these multiples. However, some say the ratio is seven hundred to one, as mentioned in the 261st verse of surah al-Baqarah, ‘that of a grain that sprouts into seven ears, each bearing one hundred grains.’

It is narrated that Abu Ad-Dahdah (radiyallahu anh) told the Messenger (sallallahu alayhi wa sallam): O Prophet of Allah! I have two gardens. If I donate one of them, do I get double of it in Jannah?’ The Messenger (sallallahu alayhi wa sallam) said yes. Abu Ad-Dahdah (radiyallahu anh) continued: ‘Is his mother going to be with him (in Jannah)?’ The Prophet (sallallahu alayhi wa sallam) said yes. ‘Are his children going to be with him?’ The Prophet (sallallahu alayhi wa sallam) said yes. Then Abu Ad-Dahdah (radiyallahu anh) donated his most beautiful garden, called Hunayniyyah, and went back to his family, who, at the time, was in the garden he had donated. Abu Ad-Dahdah (radiyallahu anh) stood by the door of the garden and told his wife the story. She said to him, ‘What a good trade you have made!’and they handed over the garden. The following verse was revealed on this occasion: ‘Who will lend to Allah a good loan which Allah will multiply many times over? It is Allah who decreases and increases. And to Him you will be returned.’ (Surah al-Baqara, 245). Rasulullah (sallallahu alayhi wa sallam) consequently said, ‘How plentiful are the sweet date clusters that Abu Ad-Dahdah has in Paradise!’

What a blessing it is that Allah reveals the way to partake in such blessed loans to His servants and shows that this abundance depends on the will and determination of the servant through ikhlas and good intentions. Seek this abundance. Pursue it through your efforts. Do not spur yourselves into misguided thoughts such as ‘Why doesn’t Allah bestow such a tremendous boon beforehand?’ because it is Allah who gives and takes, endows and deprives, enriches and impoverishes. He sometimes grants wealth and prosperity to people and sometimes leaves them in poverty and scarcity. We shouldn’t despair in times of poverty or get carried away by self-indulgence and corruption in times of prosperity, and we should always turn towards good and do good to the extent of our capacity.” (Hak Dini Kur’an Dili, Volume 2, Pages 134-135

Good Deeds Rewarded in Multiples

Salah, zakat, and qard al-hasan are good deeds as mentioned in the verse, “And continue to perform prayers, pay alms tax, and lend to Allah a good loan. Whatever good you send forth for yourselves, you will find it with Allah far better and more rewarding” (Al-Muzzammil, 20). These good deeds are mentioned together even though each one falls under a different category; they all refer to the necessity of integrity of worship, charity, and goodness.

Qard al-hasan is also gratitude; it is a reflection of it. Our Lord wants us to be grateful. Showing gratitude is possible by following His orders and advice, and avoiding forbidden acts as much as possible. Efforts of the servants towards fulfilling these criteria determine the extent of their gratitude.

There are numerous ways of showing gratitude. One of these is spending and giving loans for the sake of Allah. Allah (jalla jalaluhu) encourages infaq (zakat and sadaqah) in the 16th verse of surah At-Taghabun, and qard al-hasan in the 17th verse of the same surah, informing us that these are signs of gratitude. He promises that those who do these deeds will be rewarded as befits His name “Ash-Shakur”:

“Your wealth and children are only a test, but Allah has a great reward.

So be mindful of Allah to the best of your ability, hear and obey, and spend in charity—that will be best for you. And whoever is saved from the selfishness of their own souls, it is they who are successful.

If you lend to Allah a good loan, He will multiply it for you and forgive you. For Allah is Most Appreciative, Most Forbearing.” (At-Taghabun, 15-17)

Qard al-hasan is one of the deeds that warrants the forgiveness of sins. Let’s take a look at the 12th verse of surah Al-Maidah: “Allah made a covenant with the Children of Israel and appointed twelve leaders from among them and said, ‘I am truly with you. If you establish prayer, pay alms tax, believe in My messengers, support them, and lend to Allah a good loan, I will certainly forgive your sins and admit you into Gardens under which rivers flow. And whoever among you disbelieves afterwards has truly strayed from the Right Way.’”

As can be seen, this verse says that qard al-hasan brings about forgiveness for one’s wrongdoings along with salah, zakat, and believing in the prophets and supporting them. Elmalılı Hamdi Yazır interprets this verse as follows:

“And you lend to Allah a good loan. In other words, if you give sadaqah of your own will for the sake of Allah, besides zakat, which is fard, and believe that you will certainly be rewarded by Allah; if you don’t fervently seek to be rewarded in this world and give sadaqah considering the afterlife and the sake of Allah alone; if you pray your salah, give zakat, believe in all the prophets, defend them against enemies, and lend to Allah a good loan; if you do these five things, I will undoubtedly forgive your sins and admit you into Jannah under which rivers flow.” (Hak Dini Kur'an Dili, Volume 3, Page 183)

Salih Selçuk