Chapter on Loans (qard)
Introduction

The term qard (loan)—pronounced with a short “a” after the qāf and a silent rāʾ—
Linguistically denotes “cutting” or “severing.” Qard is a verbal noun that carries the sense of borrowing. A verbal noun (ism al-maṣdar) conveys the occurrence of an act in the same way the normal infinitive (maṣdar) does, but without containing all the root letters of the verb. Hence qard qualifies as an ism al-maṣdar because it lacks some of the root letters, both in speech and in implication.

In the Sharʿi sense, qard is the transfer of property, by way of kindness, to someone who will benefit from it and then return its equivalent.

The permissibility of qard is established by the Quran, the Sunnah, scholarly consensus, and sound legal analogy.
• Qurʾan: the general wording of His statement, Exalted be He, “…and [those who] have lent to Allah a goodly loan” (Quran 57:18).
• Sunnah: numerous texts, including the hadiths that will appear in this chapter.
• Consensus: al-Wazīr said, “The scholars unanimously agree that granting a loan is a meritorious act that earns reward.”
• Analogy: a loan falls under the broader category of voluntarily granting the benefit of property, like ʿāriyah (a gratuitous loan of a non-consumable item). In ʿāriyah the owner hands over the very article so the borrower may derive benefit and then return it: at times the benefit is use of the property itself, as with real estate; at times it is drinking the milk of loaned livestock; at times it is eating the fruit of a loaned tree, after which the tree is returned. Likewise, the borrower (mustaqlir) takes the loan to benefit from it and later returns an equivalent amount to the lender.

For that reason, it is forbidden to stipulate any increase over what was taken, and a loan is not treated as a sale, for