Editing Islamic banking and finance (section)

===Charitable lending===
====Qardh-ul Hasan====
Taqi Usmani insists that "role of loans" (as opposed to investment or finance) in a truly Islamic society is "very limited", and that Shariah law permits loans not as an ordinary occurrence, "but only in cases of dire need".<ref name="MTUHJI1999:159"/>
A shariah-compliant loan is known as ''Qardh-ul Hasan'', (also ''Qard Hasan'', literally: "benevolent loan" or "beneficence loan"). It is often described as an interest-free loan extended to needy people.<ref>{{cite web|url=http://financial-dictionary.thefreedictionary.com/Qard+al+Hasan|title=Qardhul Hasan|website=Financial dictionary|access-date=5 January 2017}}</ref><ref>{{cite web|url=http://investment-and-finance.net/islamic-finance/a/al-qard-al-hasan.html|title=Al-Qard al-Hasan|website=Investment and finance|access-date=5 January 2017}}</ref><ref name="MTUHJI1999:196">[[#MTUHJI1999|Usmani, ''Historic Judgment on Interest'', 1999]]: para 196</ref> 
Such loans are often made by social service agencies, or by a firm as a benefit to its employees,<ref name="case study">{{cite journal|last2=Alwi|first2=Norhayati Mohd|last3=Ariffin|first3=Noraini Mohd|date=2011|title=A Case Study on the Implementation of Qardhul Hasan Concept as a Financing Product in Islamic Banks in Malaysia |url=http://journals.iium.edu.my/enmjournal/index.php/enmj/article/view/201 |journal=International Journal of Economics, Management & Accounting|issue=Supplementary Issue 19|pages=81–100|last1=Abidin|first1=Ahmad Zainal|access-date=5 January 2017}}</ref> rather than by Islamic banks. They are analogous to the [[microcredit]] of conventional finance, when it does not provide for an interest.

Quoting the Islamic prophet Muhammad, some sources insist that lenders may not gain "any advantage or benefits" from the loan, let alone interest.<ref>Takaful.com. "Origins and Operations of Takaful System", Retrieved 15 December 2007 from http://www.takaful.com.sa/m1sub2.asp {{Webarchive|url=https://web.archive.org/web/20141217135329/http://www.takaful.com.sa/m1sub2.asp |date=17 December 2014 }}. This view is based on fatwa of the Shari'ah advisory board of al-Rajhi Bank, dated April 2001; cited in {{cite journal|last1= Farooq|first1=Mohammad Omar |title=Qard al-Hasana, Wadiah/Amanah and Bank Deposits: Applications and Misapplications of Some Concepts in Islamic Banking |ssrn=1418202 |journal=Arab Law Quarterly |volume=25 |issue=2 | date=19 January 2012}}</ref> 
However, some Islamic banks offer products called ''qardh-ul hasan'' which charge lenders a management fee,<ref name="Management Fees">{{cite news|url=http://www.zaharuddin.net/index2.php?option=com_content&do_pdf=1&id=161 |title=Management Fees in 'Qardul Hasan' |date=20 September 2006 |publisher=zaharuddin.net |agency=NST Business Times |last1=Abdul Rahman|first1=Ust Hj Zaharuddin Hj |access-date=5 January 2017}}</ref>
and others have savings account products called ''qardh-ul hasan,'' (the "loan" being a deposit to a bank account) where the debtor (the bank) may pay an extra amount beyond the principal amount of the loan (known as a '''''hibah''''', literally gift) if the extra is not an obligation of the account/loan agreement.<ref name=":0" />