Islamic Fiqh > Financial transactions > The loan (qard) and hawala
The interest-free loan: its pillars and sunnahs, the due debt, debt transfer (hawala) and its conditions.
The loan (qard) is giving a fungible good against returning its like; it is recommended, and any stipulated increase (gift, benefit) is riba, for it is a contract inside a contract (reported by Abu Dawud 3503). An increase not stipulated is allowed by the majority, the Malikis accepting only an increase in quality, never in quantity. The hawala moves a debt to a third debtor; licit by consensus, it frees the delegator: for the majority (Malikis, Shafi'is, Hanbalis) the creditor never returns against him, the Hanafis allowing recourse if the delegated debtor dies or is declared bankrupt.
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Updated on 07 October 2026 at 6:42 PM
Qard (interest-free loan) and hawala (transfer of debt): pillars, conditions, repayment and effects.