Qard Hasan

Qard Hasan is lending money that is repaid in the same amount, with no increase and no benefit attached to the loan.

What it means for me: A qard hasan is an act of goodwill, not a way to earn a return on your money. Any condition attached to it that benefits the lender, beyond getting the same sum back, changes its nature entirely.

Example: A friend lends you money for rent and asks only for the same amount back next month, with nothing extra. That is a qard hasan: goodwill, not an investment.

Do not confuse with: Riba, an unjustified increase. A qard hasan returns exactly what was lent; any stipulated extra, however small, turns the same loan into riba instead.

If scholars differ: Scholars agree a stipulated increase turns a loan into riba. They differ on whether a voluntary, unstipulated increase at repayment is permitted. Some hold it becomes questionable once it turns into an expected custom rather than a genuine gesture.