---
title: "What is Qard? | IslamicOpenFinance™"
description: "A loan of money to be repaid in an equivalent amount; any benefit stipulated for the lender is riba."
url: https://islamicopenfinance.com/glossary/qard/
lang: en-GB
source: "IslamicOpenFinance"
---

[Glossary](https://islamicopenfinance.com/glossary/) / [Deposits and accounts](https://islamicopenfinance.com/glossary/#accounts)

Deposits and accounts

# Qard

A loan of money to be repaid in an equivalent amount; any benefit stipulated for the lender is riba.

Qard is the payment of money to someone who will benefit from it, on condition that its equivalent is repaid, according to the IFSB definition. The borrower returns the same amount, and any increase or benefit stipulated for the lender is riba. In Islamic banking, qard underlies many current accounts, benevolent loans, and short-term support such as a takaful operator's loan to a fund in deficit.

## Sources

- [IFSB-23 Revised Capital Adequacy Standard (Banking Segment), 2021: Definitions, Qard](https://www.ifsb.org/wp-content/uploads/2023/10/IFSB-23_En.pdf)

This entry explains a term; it is not a Shariah ruling. Approving a product is for each institution's own Shariah board and regulator.

## Related terms

[**Qard hasan** A benevolent loan repaid at face value with no return for the lender, often used for social and hardship lending.](https://islamicopenfinance.com/glossary/qard-hasan/) [**Riba** An increase over principal that Shariah prohibits: extra stipulated on a loan, or an unequal exchange of certain like-for-like goods.](https://islamicopenfinance.com/glossary/riba/) [**Wadiah** Safekeeping: an asset placed with a custodian to be kept and returned on demand.](https://islamicopenfinance.com/glossary/wadiah/) [**Participants' risk fund** The pool of donated contributions from which takaful claims are paid, owned collectively by participants and managed by the operator.](https://islamicopenfinance.com/glossary/participants-risk-fund/)

**Deposits and accounts**

1. [Wadiah](https://islamicopenfinance.com/glossary/wadiah/)
2. [Hibah](https://islamicopenfinance.com/glossary/hibah/)
3. [Islamic deposit](https://islamicopenfinance.com/glossary/islamic-deposit/)
4. [Profit-sharing investment account (PSIA)](https://islamicopenfinance.com/glossary/profit-sharing-investment-account/)
5. [Unrestricted investment account](https://islamicopenfinance.com/glossary/unrestricted-investment-account/)
6. [Restricted investment account](https://islamicopenfinance.com/glossary/restricted-investment-account/)
7. [Investment account holder](https://islamicopenfinance.com/glossary/investment-account-holder/)
8. [Wadiah yad amanah](https://islamicopenfinance.com/glossary/wadiah-yad-amanah/)

[All 221 terms](https://islamicopenfinance.com/glossary/)