Qard (قرض) is the transfer of ownership in fungible wealth (mal mithli) from one person to another so that it is binding on the latter (borrower) to return to the former (lender) similar wealth. On the other hand, qard hasan (قرض حسن) is a purposeful qard which constitutes a transfer of fungible wealth from one party to another and that is repayable only when the second party has the ability to do so (with a similar type or source of wealth).
| Qard | Qard Hasan |
| General in meaning | Purposeful, specific |
| Conditional repayment: borrower becomes liable for the repayment of similar wealth |
Optional repayment: borrower is conditionally liable for the repayment of wealth if has the ability (wealth available) to repay |
| The stipulation of excess (ziyadah) for the lender is prohibited | The stipulation of excess (ziyadah) for the lender is prohibited |
| Repayable on demand | Essentially, not structured to be repaid on demand |
| In an institutional setting, it is permitted to a lending institution to charge for services rendered in association with qard, provided that such charges are equal to the actual amount incurred on such services |
In an institutional setting, it is permitted to a lending institution to charge for services rendered in association with qard, provided that such charges are equal to the actual amount incurred on such services |
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