Qard Hasan | Forgotten Key to Building Sustainable Communities

In every mosque after prayers, someone whispers a prayer for a new job, school fees, or capital to start a small business. For many, that prayer lingers unanswered not because of a lack of faith, but a lack of fair opportunity.

Yet more than 1,400 years ago, Islam introduced a financial principle that could unlock these doors, one rooted not in profit, but in purpose: Qard Hasan, the Goodly Loan.

At Zakatek, we see Qard Hasan not as a historical concept but as a living solution,  a divine blueprint for rebuilding the economic backbone of Muslim communities. It’s how we turn generosity into growth, and giving into Sadaqatul Jariyah (a charity that keeps giving, long after the money leaves your hands).

What is Qard Hasan?

Qard Hasan literally means a beautiful loan given with goodness and sincerity.

It appears six times in the Qur’an, each time as a metaphor for lending to Allah;  not because He needs it, but to honour those who give for His sake.

 “Who is it that will loan Allah a goodly loan so He may multiply it for him many times over?”
— Surah Al-Baqarah 2:245

A Qard Hasan is interest-free and compassionate, intended to help the borrower stand again rather than sink deeper. It’s a system that blends spirituality and economics,  where money circulates as a form of mercy.

The Six Qur’anic Mentions of Qard Hasan

Here are the six ayahs where Allah mentions Qard Hasan, each revealing a layer of meaning:

1. Surah Al-Baqarah 2:245
   

   “Who is it that will loan Allah a goodly loan so that He may multiply it for him many times over? And it is Allah who withholds and grants abundance, and to Him you will be returned.”

2. Surah Al-Ma’idah 5:12
   

   “And Allah said: I am with you. If you establish prayer and give zakah and believe in My messengers and honour them and loan Allah a goodly loan, I will forgive your sins and admit you to gardens beneath which rivers flow.”

3. Surah Al-Hadid 57:11
   

   “Who is he that will lend to Allah a goodly loan so that He may multiply it to him, and he shall have a noble reward?”

4. Surah Al-Hadid 57:18
   

   “Indeed, the men who give charity and the women who give charity and [they] loan Allah a goodly loan – it will be multiplied for them, and they will have a noble reward.”

5. Surah At-Taghabun 64:17
   

   “If you loan Allah a goodly loan, He will multiply it for you and forgive you. And Allah is Most Appreciative, Most Forbearing.”

6. Surah Al-Muzzammil 73:20
   

   “And loan Allah a goodly loan. Whatever good you put forward for yourselves, you will find it with Allah – better and greater in reward.”

Each verse connects Qard Hasan with reward, forgiveness, and spiritual elevation, showing that true wealth is found in what we give, not what we keep.

Qard Hasan in Islamic History

From the early days of Islam, Qard Hasan was the backbone of community finance.

• The Ansar of Madinah practised it when they welcomed the Muhajirun, sharing wealth, homes, and business interests free.
• Caliph Umar (RA) and Abdur Rahman ibn Awf (RA) were known to give Qard Hasan to small traders and farmers to help them rebuild after a loss.
• Even in Ottoman times, waqf-based Qard Hasan funds were established to provide microloans to artisans, widows, and students —a system centuries ahead of modern microfinance.
  

Why Qard Hasan Still Matters Today

1. A Solution to Modern Financial Injustice

In today’s economy, interest-based systems quietly punish the poor. Young entrepreneurs are locked out of credit. Families fall into debt trying to rise.

Qard Hasan restores fairness; it makes capital accessible without exploitation. It gives a farmer tools, a student hope, and a trader a second chance, all without interest.

It transforms charity into empowerment, replacing dependency with dignity.

   2. A Path to Economic Justice and Barakah

Islamic finance was never just about profit; it was about balance. Wealth is not ownership; it’s Amanah, a trust from Allah to circulate for good.

 “And whatever you spend in the cause of Allah, He will replace it; and He is the Best of providers.”
— Surah Saba 34:39

Prophet Muhammad ﷺ said:

“Whoever relieves a believer’s distress, Allah will relieve him of distress on the Day of Judgment.”
— (Sahih Muslim)

When we give or lend sincerely, we do more than fix a problem; we build a system of barakah, where blessings ripple through generations.

    3. It Strengthens the Fabric of the Ummah

Qard Hasan is how we turn faith into fellowship.

Early Muslim societies thrived because communities looked out for one another, not waiting for institutions, but acting as one. Under Caliph Umar ibn al-Khattab (RA), public funds were distributed interest-free to farmers and traders, fueling economic independence.

Waqf endowments later extended the same spirit, financing schools, hospitals, and public utilities without interest, sustained by trust and faith.

At its heart, Qard Hasan builds connection; the kind our modern systems have forgotten.

Qard Hasan as Sadaqatul Jariyah

Every Qard Hasan is a form of Sadaqatul Jariyah.

When you fund a small business, that act continues to give. As the business grows, it supports a family. When that family gives back, the cycle continues.

 “When a person dies, his deeds come to an end except for three: ongoing charity, beneficial knowledge, or a righteous child who prays for him.”
— (Sahih Muslim)

At Zakatek, we’ve built our entire system around this prophetic wisdom, turning simple giving into a living chain of empowerment that never stops at charity, but grows into enterprise and independence. See projects powered by Qardh Hassan

The Zakatek Model: Turning Faith into Sustainable Development

At Zakatek, we’re not waiting for outside solutions. We’re reviving one from within our own faith; using Qard Hasan as a modern engine for Islamic microfinance, Zakat-driven entrepreneurship, and community resilience.

Here’s how it works:

1. We collect Zakat and Sadaqah from believers who want a long-term impact.
2. We fund small-scale income projects, from farming to retail, tailoring, and food businesses, using interest-free principles.
3. We reinvest returns into new projects, creating a continuous loop of empowerment.

How Qard Hasan Solves Modern Challenges

A Return to Divine Economics

The world has taught us to measure wealth by profit, but the Qur’an teaches us to measure it by impact.

Qard Hasan reminds us that faith is not passive; it’s a force that builds economies, restores dignity, and reconnects communities.

 “If you loan Allah a goodly loan, He will multiply it for you and forgive you. And Allah is Most Appreciative, Most Forbearing.”
— Surah At-Taghabun 64:17

At Zakatek, we are not reinventing finance; we are reviving divine finance: a system that values people over profit, and purpose over return.

So the next time you give, think bigger than charity, think continuity.
Because when you give through Qard Hasan, you don’t just change a life; you change a generation.

Visit our project page to learn more, contribute, or join our weekly giving community.