All loans in Islam are interest free. Qardh al-hasan (, transl. benevolent lending) is the one which is without a collateral. However some Ulama deem it a form of interest-free loan (fungible, marketable wealth) that is extended by a lender to a borrower on the basis of benevolence (ihsan). Al-qardh, from a shari’a point of view, is a non commutative contract, as it involves a facility granted only for the sake of tabarru’ (donation). Therefore, al-qardh al-hasan is a gratuitous loan extended to people in need, for a specified period of time. At the end of that period, the face value of the loan (asl al-qardh) is to be paid off. In other words, shari’a prohibits the stipulation of an excess for the lender, as it amounts to riba, whether the excess is expressed in terms of quality or quantity, or whether it is a tangible item or a benefit. However, it is permitted that the repayment of qardh (loan extinguishing) is made with an excess (tangible item, benefit, service, etc.), provided that such an excess is neither expressly stipulated nor implicitly pre-arranged (through collusion or tawatu’) in the contract of loan. Etymology Qardh (), translated as loan in English, means "to cut", because historically the lender cut off part of his or her property to give to the borrower as a loan. The word hasan is derived from Ihsan (), which is translated as splendid or beautiful. Scriptural basis The word qardh appears in the Qur'an in six verses: Q2:245, Q5:12, Q57:11, Q57:18, Q64:17, Q73:20. In every verse it is used as part of the phrase qardh al-hasan, and always in reference to a loan to Allah rather than other human beings. One example is If you loan to Allah, a beautiful loan [tuqridu llaha qard hasan], He will double it to your (credit), and He will grant you Forgiveness ..(Qur’an 64(al-Tagabun):16–17.) Qardh also appears in numerous hadith. In contrast to use in the Quran, none of the hadith in the collections of Bukhari, Muslim, Abu Dawud, Nasa'i, Ibn Majah, Tirmidhi, Muwatta, Musnad Ahmad, or Darimi contain the phrase qardh al-hasan. All use qardh without any qualifier. Concept The concept of Qardh al-hasan is to assist the poor or needy by offering a loan without any interest. The Quran states that such a loan is beautiful and admirable because the borrower of such a loan is God; not the